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AND  ROGERS  SERIES 


GIFT   OF 
Dr.  William  H.   Ivie 


Digitized  by  the  Internet  Archive 

in  2008  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/firstlessonsinboOOwillrich 


^JVILLIAMS  &  ROGERS  SERIES 

FIEST   LESS^ONS 


I2S- 


BOOK-KEEPING 


BY 


SllSTGLE   AND   DOUBLE   ElsTTRT 


WITH   AN    EXERCISE   IK 


Business  Pkactice 


FOR   USE   IK   ALL   SCHOOLS   IK   WHICH   THE 


COMMERCIAL  BRANCHES  ARE  TAUGHT. 


ESPECIALLY    DESIGKED    FOR    USE   IK 


District  and  Graded  Schools 


AKD    FOR 


EVENIXG-  CLASSES  IX  BUSINESS  COLLEGES. 


REAaSED  AND  ENLARGED. 


NEW  YORK    •:•    CINCINNATI    •:•    CHICAGO 

AMERICAN  BOOK  COMPANY 


Entered  according  to  Act  of  Congress,  in  the  year  1889, 

By  WILLIAMS  &  ROGERS, 

In  the  oflBce  of  the  Librarian  of  Congress,  at  Washington,  D.  C. 

Copyright,  1892, 
By  WILLIAMS  &  ROGERS. 

W.  p.    II 


GIFT 


'^. 


PRErACE. 


This  book  was  written  in  response  to  numerous  requests  which  the  publishers  received 
from  teachers  in  district  and  graded  schools  for  a  text-book  on  book-keeping,  especially 
adapted  to  such  schools,  and  constructed  on  the  plan  of  their  Complete  Book-keeping. 

The  features  of  the  Complete  Book-keeping  which  have  commended  that  work  so 
strongly  to  teacliers,  and  which  have  probably  contributed  most  largely  to  its  extraordinary 
popularity  and  introduction,  are  the  minute  explanations  of  every  step  to  be  taken  by  the 
pupil;  the  system  of  illustrative  examples  employed,  enabling  the  pupil  to  perform  the 
work  himself,  thus  cultivating  self-reliance;  the  careful  and  systematic  grading  of  the  exer- 
cises; and  the  script  plates  with  which  the  sets  are  illustrated. 

All  of  the  features  described  above  have  been  incorporated  in  this  work,  and  it  is  believed 
that  the  pupils  for  whom  the  book  is  designed  will  have  no  difficulty  in  securing,  from  the 
exercises  given,  complete  knowledge  of  the  principles  of  book-keeping,  as  well  as  important 
aid  in  the  direction  of  obtaining  a  good  hand-writmg,  and  that  practically  independent  of 
the  teacher. 

The  set  on  Business  Practice  will,  it  is  believed,  add  greatly  to  the  value  of  the  work, 
and  meet  the  demand  for  that  kind  of  instruction  in  the  classes  for  which  the  book  is 
designed. 


fSi7S7S77 


CONTENTS. 


PAGE. 

General  Definitions 5 

Single  Entry. 5 

Explanation  of  books  required 5 

Definition  of  terms ..- 6 

General  Rules 7 

The  Cash  Book  explained 8 

Cash  Book  illustrated 8-9 

First  Exercise 9 

Balancing  the  Cash  Book 10 

Second  Exercise. 11 

Journal  explained 12 

Third  Exercise 12 

Journal  illustrated 13 

Fourth  Exercise 14 

Journal  and  Cash  Book 18 

Fifth  Exercise 18 

Journal,  Cash  Book,  and  Ledger. 21 

Sixth  Exercise 21 

Instructions  for  Posting 22 

Ledger  illustrated. 26 

Seventh  Exercise. 29 

Illustration  of  Proprietor's  account  closed 32 

Eighth  Exercise 32 

Promissory  Notes  explained  and  illustrated 35 

Ninth  Exercise 35 

Bill  Book  explained 36 

Bill  Book  illustrated -..38-89 

Invoices  explained 38 


PAGE. 

Invoice  illustrated _ 39 

Tenth  Exercise 41 

Eleventh  Exercise 44 

Partnership  busir^ess. 44 

Twelfth  Exercise 47 

Explanation  of  Bank  Account 49 

Thirteenth  Exercise 49 

Double  Entry 53 

Explanation  of  Books  required 53 

General  Rules. 54 

Illustration  of  Check  Book. 55 

Illustration  of  Double  Entry  Journal 56 

Fourteenth  Exercise 57 

Trial  Balance  explained  and  illustrated 62-63 

Losses  and  Gains 63 

Closing  the  Ledger  explained 65 

Fifteenth  Exercise 66 

Changing  from   Single  to  Double   Entry  ex- 
plained  -  68 

Sixteenth  Exercise. 69 

Seventeenth  Exercise 72 

Cash  Book,  Double  Entry,  illustrated 72-73 

Drafts  explained 75 

Eighteenth  Exercise 75 

Drafts  illustrated 76 

Abbreviations  and  Contractions 80 

Appendix i 

Business  Practice i 


Book-Keeping 


BOOK-KEEPING  '  is  a  record  of  the  facts  pertaining  to  business  transactions.     '  By  the 
term  business  transactions  is  meant  dealings  between  two  or  more  persons. 

*The  object  of  keeping  books  is  to  enable  the  proprietor  to  ascertain,  at  any  time, 
with  certainty  and  ease,  any  particulars  regarding  his  business. 

*  There  are  two  methods  of  book-keeping  in  general  use,  termed  ^Single  Entry  and 
'Double  Entry. 

^  In  Single  Entry  Book-keeping  only  personal  accounts  are  kept  in  the  Ledger. 

'  In  Double  Entry  Book-keeping  accounts  are  kept  in  the  Ledger  with  things  as  well 
as  persons. 

Since  only  Single  Entry  Book-keeping  will  be  treated  in  this  connection,  further  explanation  of  Double 
Entry  will  be  deferred  until  Single  Entry  has  been  mastered. 

Single  Entry  Book-Keeping. 

Books  Required. 

•The  books  to  be  used  depend  much  upon  the  nature  and  extent  of  the  business.  "The 
main  books  usually  employed  are  Cash  Book,  Bill  Book,  Journal,  and  Ledger.  "Other 
books,  as.  Sales  Book,  Order  Book,  Shipping  Book,  etc.,  are  sometimes  used. 

"  The  Cash  Book  contains  the  receipts  and  payments  of  cash.  "  The  difference  between 
the  sum  of  the  receipts  of  cash  and  the  sum  of  the  payments  of  cash  will  show  at  any  time 
thye  amount  of  cash  on  hand.     {See  pages  8  and  9  for  form  of  Cash  Book.) 

"The  Journal  contains  all  debits  and  credits  to  persons  arising  from  transactions  with 
such  persons.  '^Such  debits  and  credits  should  be  accompanied  by  sufficiently  clear  and 
complete  explanations  of  the  transactions  giving  rise  to  the  entries  that  anybody,  whether 
familiar  with  the  circumstances  or  not,  would  readily  understand  all  important  facts  regard- 
ing them.     ( See  page  13  for  form  of  Journal. ) 

A  clear  and  complete  history  of  every  important  transaction  should  be  preserved  in  some  form.  This  is 
especially  true  in  all  matters  affecting  the  interests  of  other  persons.  There  are  several  ways  of  preserving 
such  a  history.  '*  One  is  to  record  every  important  transaction  in  a  book,  usually  called  a  Day  Book,  or 
Blotter;  "  another  is  by  entering  all  of  the  particulars  of  the  transaction  on  a  memorandum  slip,  and,  after 
the  proper  entry  has  been  made  from  it,  filing  it  away  for  future  reference;  and  '*  still  another  is  to  preserve 
copies  of  all  letters  and  invoices,  in  an  impression  book.  The  memoranda  of  transactions  given  on  page  10, 
is  in  the  nature  of  a  Day  Book,  and  is  regarded  a  suflSicient  illustration  of  that  book  and  its  use. 

^*  The  Bill  Book  is  designed  to  contain  a  record  of  all  of  our  written  obligations  issued 
to  other  persons,  and  *"  of  those  in  our  possession  made  by  other  persons.  *^  Such  obligations 
in  our  favor  are  called  Bills  Receivable,  and  **  ours  in  favor  of  others  are  called  Bills  Payable. 

5 


^  SINGLE  ENTBY  BOOK-KEEPING. 

"The  Ledger  is  the  business  man's  account  book.  " In  this  book  the  debits  and  credits 
of  the  Journal  are  grouped  under  their  proper  titles  — the  names  of  the  persons.  "Such 
collections  of  debits  and  credits  are  called  Accounts,  and  "the  process  of  grouping  is  called 
Posting,     {See  page  26  for  form  of  Ledger. ) 


DEFiisriTio]:^  or  Teems. 

"  The  term  Debit,  which  is  abbreviated  Dr.,  indicates  either  that  "the  person  with  whose 
name  it  is  connected  has  become  indebted  to  us,  or  that  ''  we  have  got  out  of  his  debt. 

"  The  term  Credit,  which  is  abbreviated  Cr.,  indicates  that » we  have  become  indebted  to 
the  person  with  whose  name  it  is  connected,  or  that  "  that  person  has  got  out  of  our  debt. 

"A  Resource  is  any  kind  of  property  belonging  to  the  business;  as,  '"an  account  owing 
to  us,  another  person's  note  in  our  favor,  cash  on  hand  or  in  bank,  real  estate,  stocks,  bonds, 
mortgages,  goods  in  stock,  furniture  and  fixtures,  unpaid  interest  in  our  favor  —  in  short, 
anything  of  value  in  our  possession  or  belonging  to  us,  or  a  debt  due  us. 

"A  Liability  is  a  debt  of  any  kind  owing  by  us;  as,  "  our  note  outstanding,  or  a  debt 
due  another  person. 

"  InTestment,  as  a  book-keeping  term,  is  applied  to  the  capital  put  into  a  business. 
"The  investment  maybe  composed  of  cash  entirely,  or  "it  may  be  made  up  of  various  kinds 
of  property;  as,  ^'amounts  due  from  others,  real  estate,  or  anything  of  value. 

"The  Present  Worth  of  the  proprietor  is  the  net  value  of  his  interest  in  the  business 
at  any  stated  period.  °*  The  amount  of  the  present  worth  may  be  ascertained  at  any  time  by 
finding  the  difference  between  the  sum  of  the  resources  and  the  sum  of  the  liabilities. 
"  If  the  sum  of  the  resources  exceeds  the  sum  of  the  liabilities,  the  difference  shows  that  the 
proprietor  has  property  in  the  business  to  that  amount;  and  *"  if  the  sum  of  the  liabilities 
exceeds  the  sum  of  the  resources  the  difference  shows  that  the  business  is  insolvent, — in 
other  words,  that  there  is  not  sufficient  property  in  the  business  to  pay  the  debts  of  the 
business. 

*^  The  Net  Gain  is  the  excess  of  the  present  worth  over  the  net  investment. 

*'  The  Net  Loss  is  the  excess  of  the  net  investment  over  the  present  worth. 

*'  The  net  gain  which  has  been  realized,  or  the  net  loss  which  has  been  sustained,  during 
the  progress  of  the  business,  may  therefore  be  ascertained  by  finding  the  difference  between 
the  investment  and  the  present  worth.  "  If  the  present  worth  exceeds  the  investment,  the 
difference  shows  that  the  proprietor  is  now  worth  more  in  the  business  than  he  was  at  the 
outset,  or  at  the  last  closing  of  the  books,  which  would  of  course  indicate  a  gain;  while,  *'if 
the  present  worth  is  less  than  the  investment,  it  will  be  apparent  that  the  difference  will 
show  that  the  interest  of  the  proprietor  has  diminished,  or  that  he  has  sustained  a  loss. 

**  Cash  is  the  term  applied  to  specie,  government  bills,  bank  bills,  bank  checks,  sight 
drafts,  postal  notes,  money  orders,  in  fact  all  paper  that  is  payable  in  money  on  demand. 

"Bills  Receivable  is  the  term  applied  to  the  negotiable  written  promises  of  other 
parties,  payable  at  a  future  time,  which  come  into  our  possession;  as,  "notes  and  accepted 
drafts. 

"  Bills  Payable  is  the  term  applied  to  our  negotiable  written  obligations  issued  to  other 
parties,  and  payable  at  a  future  time;  as,  ^°  notes  and  accepted  drafts. 


SINGLE  ENTRY  BOOK-KEEPING.  7 

General  Rules  for  Sijstgle  E^trt. 

Rule  1. — "'Tlie  Propeietor  is  Credited 

'■For  the  sum  of  his  resources  at  the  beginning  of  business; 
^For  subsequent  investments  in  the  business;  and 
"For  his  net  gain,  if  any,  when  the  booJcs  are  closed. 
Rule  2,— '''The  Proprietor  is  Debited 

"^For  the  sum  of  his  liabilities  at  the  beginning  of  business; 
^For  such  sums  as  he  may  draw  out  of  the  business  from  time  to  time;  and 
"For  his  net  loss,  when  the  books  are  closed,  if  there  has  been  a  loss. 
Rnle  3. — "Persons  are  Debited  in  the  Journal 
"When  they  get  into  our  debt;   and 
^  When  lue  get  out  of  their  debt,  in  full  or  in  part. 
Rule  4. — "Persons  are  Credited  in  the  Journal 
■  When  we  get  into  their  debt ;   and 
^When  they  get  out  of  our  debt,  in  full  or  in  part. 
Rule  5. — "  Cash  is  Debited  in  the  Cash  Booh  when  it  is  received  into  the  business 
from  whatever  source. 

Rule  ft. — "  Cash  is  Credited  in  the  Cash  Book  when  it  is  paid  out  for  whatever 
purpose. 

Rule  7. — "Bills  Receivable  are  entered  in  the  Bill  Book  as  soon  as  received,  with  all 
of  the  particulars  regarding  them  ;  as,  the  date  of  the  note  or  acceptance,  the  date  on  which  it 
will  fall  due,  the  name  of  the  party  tuho  will  have  to  pay  it,  the  name  of  the  endorser,  if  any, 
the  name  of  the  place  where  it  is  payable,  and  the  amount ;  and  "  when  it  is  paid  it  is  so 
indicated  in  the  proper  column  in  the  Bill  Book. 

Rule  8. — ''  Bills  Payable  are  entered  in  the  Bill  Book  as  soon  as  issued,  with  all  the 
facts  regarding  them;  as,  the  date,  the  date  of  maturity i  the  name  of  the  payee,  the  name  of  the 
place  where  payable,  and  the  amount;  and  *"  when  paid  it  is  so  indicated  in  the  proper  column. 

Sometimes  a  Cash  account,  a  Merchandise  account,  or  an  Expense  account  is  kept  in  the  Single  Entry 
Ledger,  and  sometimes  all  of  these  are  kept;  but  when  such  is  the  case  it  ceases  to  be  Single  Entry,  as  a 
purely  Single  Entry  Ledger  contains  only  personal  accounts.  To  the  extent  that  a  Single  Entry  Ledger 
contains  other  than  personal  accounts  it  approaches  Double  Entry,  but  it  still  will  lack  many  of  the  valuable 
qualities  of  the  Double  Entry  method. 

QUESTIOI^S. 

^  What  is  Book-keeping?  *  Wha^  is  meant  by  the  term  ^'  business  transaction  "?  *  What 
is  the  object  of  keeping  books?  *  How' many  methods  of  book-keeping  are  there  in  general 
use?  ^-*  What  are  they  called?  "  What  accounts  are  kept  in  the  Ledger  in  Single  Entry? 
*  What,  in  Double  Entry?  'Upon  what  do  the  books  to  be  used  in  a  business  depend? 
^^  What  are  the  main  books  usually  employed?  ^^  What  other  books  are  sometimes  used? 
'*  What  does  the  Cash  Book  confain?  ^'  What  will  the  difference  between  the  sum  of  the 
receipts  and  payments  of  cash  show  at  any  time  ?  ^  *  What  does  the  Journal  contain  ?  ^  ^  How 
much  explanation  of  the  transaction  should  accompany  the  Journal  entry?  ^ «-^ *  Describe 
three  ways  by  which  this  may  be  done.  ''-^''  What  does  the  Bill  Book  contain?  ''^-"^  What 
are  these  obligations  called?  **What  does  the  Ledger  contain?  ^^What  is  an  account? 
*'  What  is  meant  by  posting?  ^^  What  is  meant  by  the  term  debit?  **  What,  by  the  terra 
credit?  *»  What  is  a  Resource?  »°  Give  an  example.  *^  What  is  a  Liability?  "Give  an 
example.    "What  is  meant  by  the  term  Investment  ?    » «-» « Of  what  may  it  consist  ?    » ^  Define 


7 

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Present  Worth.  "  How  may  the  amount  of  the  present  worth  be  found  ?  "  If  the  sum  of 
the  resources  exceeds  the  sum  of  the  liabilities,  what  does  the  difference  show?  "When 
is  the  proprietor  said  to  be  insolvent  ?  "  What  is  meant  by  Net  Gain  ?  "  By  Net  Loss  ? 
"  How  may  either  be  ascertained  ?  "  How  may  the  amount  of  the  net  gain  be  determined  ? 
"How,  the  net  loss?  " To  what  is  the  term  cash  applied  ?  *^""  What  is  meant  by  the  term 
Bills  Keceivable  ?  *'"*''  What,  by  the  term  Bills  Payable  ?  "  For  what  is  the  proprietor 
credited?  "For  what  debited?  "  When  are  persons  debited  ?  "  When  credited?  "When 
is  cash  debited  ?  "  When  credited  ?  """  When,  where,  and  how  are  Bills  Receivable  entered  ? 
•""  What  record  is  made  of  Bills  Payable  when  they  are  issued  ? 


The  Cash  B©0b:. 

The  Cash  Book,  as  before  stated,  contains  a  record  of  the  receipts  and  payments  of 
cash.  "There  are  two  methods  of  keeping  a  Cash  Book  in  common  use.  "One  provides 
for  employing  a  book  having  a  page  with  double  money  columns,  the  first  or  left-hand 


SINGLE  ENTRY  BOOK-KEEPING. 


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column  for  the  receipts  of  cash,  and  the  second  or  right-hand  column  for  the  payments  of 
cash;  and  "the  other  method  pj-ovides  for  using  opposite  pages  in  the  Cash  Book,  the  left- 
hand  page  for  the  receipts  of  cash,  and  the  right-hand  page  for  the  payments  of  cash. 

Since  errors  are  more  liable  to  occur  when  both  receipts  and  payments  are  entered  in  adjoining  colomnB, 
the  use  of  opposite  pages  is  more  common,  and  is  here  recommended. 


FlEST  EXEEOISE. 

You  will  now  arrange  the  receipts  and  payments  of  cash  which  are  given  in  the  following 
series  of  transactions,  in  your  Cash  Book,  as  shown  in  the  engraved  "  Cash  Book,"  illustrated 
on  pages  8  and  9.  When  this  work  has  been  performed,  you  will  observe  that  the  Cash  Book 
contains  all  of  the  information  regarding  the  transactions  given  that  that  book  is  designed 
to  exhibit,  as  explained  on  page  5,  viz. :  the  receipts  of  cash  on  the  left-hand  or  debit  side, 
and  the  payments  of  cash  on  the  right-hand  or  credit  side;  and  the  balance,  or  difference 
between  the  sides,  which  is  the  amount  of  cash  on  hand,  may  also  be  shown. 


IQ  SINGLE  ENTRY  BOOK-KEEPINQ. 

SERIES  OF  TRA.KSACTIONS. 
Jantjakt  1,  190-. 

1.  Commenced  business  this  day,  investing  as  capital  $1000,  cash.     {Place  this  on  the  left- 

hand  or  debit  side  of  the  Cash  Booh.     See  Rule  5,  page  7,  and  illustration  on  page  8.) 

2.  Bought  a  Horse  and  Wagon  for  use  of  the  business,  for  which  I  paid  $100  and  $75, 

respectively.     {Place  these  items  on  the  right-hand  or  credit  side  of  the  Cash  Book. 
See  Rule  6,  page  7,  and  illustration  on  page  9.) 

3.  Bought  20  one-eighth  barrel  sacks  of  Flour,  at  65  cents  per  sack,  for  which  I  paid  cash, 

$13.     {Cr.  side  of  Cash  Booh.     See  Rule  6,  page  7,  and  illustration,  page  9.) 
5.     Sold,  foi  cash,  2  sacks  of  Flour,  at  80  cents  per  sack,  $1.60.     {Dr.  side  of  Cash  Booh.) 
7.     Sold,  for  cash,  6  sacks  of  Flour,  at  82|-  cents  per  sack,  $4.95.     {Dr.  side  of  Cash  Booh.) 
9.     Bought  50  bushels  of  Oats,  at  37  cents  per  bushel,  for  which  I  paid  cash,  $18.50.     {Cr. 

side  of  Cash  Booh.) 
10.     Bought,  for  cash,  100  bushels  of  Corn,  at  55  cents  per  bushel,  $55.     {Cr.  side  of  Cash 

Book.) 

13.  Sold,  for  cash,  20  bushels  of  Oats,  at  42  cents  per  bushel,  $8.40.    {Dr.  side  of  Cash  Booh.) 

14.  Bought,  for  cash,  2  tons  of  Coal,  at  $5  per  ton,  for  use  of  store.     {Cr.  side  of  Cash  Booh.) 
16,     Sold,  for  cash,  5  sacks  of  Flour,  at  85  cents  per  sack,  $4.25.     {Dr.  side  of  Cash  Booh.) 

19.  Sold,  for  cash,  25  bushels  of  Corn,  at  60  cents  per  bushel,  815.     {Dr.  side  of  Cash  Booh.) 

20.  Bought,  for  cash,  100  sacks  of  Flour,  at  62  cents  per  sack,  $62.     {Mahe  the  remaining 

entries,  if  possible,  without  referring  to  the  illustratiofis.) 

21.  Sold,  for  cash,  35  sacks  of  Flour,  at  80  cents  per  sack,  $28. 

24.  Sold,  for  cash,  25  bushels  of  Oats,  at  43  cents,  $10. 75. 

25.  Sold,  for  cash,  30  bushels  of  Corn,  at  62  cents,  $18.60. 

27.  Sold,  for  cash,  4  sacks  of  Flpur,  at  80  cents,  $3.20. 

28.  Bought,  for  cash,  100  bushels  of  Corn,  at  55  cents,  $55. 

30.  Sold,  for  cash,  75  bushels  of  Corn,  at  62  cents,  $46.50. 

31.  Sold,  for  cash,  25  sacks  of  Flour,  at  82  cents,  $20.50. 

BALA]sroi:^G  the  Cash  Book 

It  will  now  be  clear  to  you,  that  "the  left-hand,  or  debit  side  of  the  Cash  Book,  contains 
a  record  of  all  of  the  cash  received,  and  "the  right-hand,  or  credit  side,  a  record  of  all  of  the 
cash  paid  out;  and  it  will  be  equally  apparent  that  *°the  difference  between  the  sums  of  the 
sides,  $773.25,  must  show  the  amount  of  cash  on  hand  January  31st. 

You  will  now  "  close,  or  balance,  the  Cash  Book,  as  the  operation  is  called,  as  follows^ 
"Draw  one  red  line  across  the^rs^  money  column  on  the  left-hand  page  of  the  book,  on  the 
same  line  with  the  last  item  entered  {see  illustration  on  page  8) ;  "  next  add  the  items  in  this 
column,  and  place  their  sum,  $1161.75,  in  the  second  money  column  on  the  next  line  below 
the  one  on  which  the  last  item  was  entered  {see  illustration  on  page  8).  {Before  reading 
further  perform  the  worh  precisely  as  instructed  above.)  '"Now,  draw  another  red  line  across 
the  first  money  column  on  the  right-hand  page,  on  the  same  line  with  the  last  item  entered 
{see  illustration  on  page  9);  " next,  add  the  items  in  this  column  and  place  their  sum, 
$388.50,  in  the  second  money  column,  on  the  next  line  below  the  one  on  which  the  last  item 
was  entered  {see  illustration  on  page  9);  "then  on  the  next  line  on  the  right-hand  puge  enter 
in  the  date  column,  the  date  of  balancing  the  book,  31;  in  the  explanation  column,  the 
explanation.  Balance  on  hand;  and  in  the  right-hand  money  column,  the  balance,'  $773,25, 


SINGLE  ENTBT  BOOK-KEEPINQ.  H 

which  is  the  difference  between  the  sum  of  the  receipts  and  the  sum  of  the  payments  of  cash 
for  the  month  {see  illustration  on  page  9).  "  Next,  on  the  left-hand  page,  rule  one  red  line 
across  the  second  money  column,  on  the  same  line  with  the  last  item  entered  {see  page  8) ;  and 
'*  one  line  below  this  rule  two  red  lines,  one  directly  on  the  blue  line,  and  the  other  just  far 
enough  below  it  so  that  the  two  lines  will  not  run  together,  extending  the  lines  across  the 
date  column,  and  the  two  money  columns,  which  will  be  omitting  the  explanation  column 
■  {see  illustration,  page  8).  "  Next  rule  single  and  double  red  lines  on  the  right-hand  page,  in 
the  same  manner,  directly  opposite  those  on  the  left-hand  page;  'Hhen  write  the  footings 
between  the  single  and  double  red  lines  on  each  page  {see  illustrations, pages  8  and  9)'. 

If  this  business  were  to  be  continued,  the  balance  of  cash,  $773.25,  should  be  brought 
below  the  rulings  on  the  Dr.  side  under  date  of  February,  as  illustrated  on  pages  8  and  9. 


Secoi^d  Exercise. 

It  is  believed  that  you  will  now  be  able  to  enter  properly  the  items  of  cash  contained  in 
the  following  transactions  with  no  further  aid  than  is  afforded  by  reference  to  the  instructions 
and  illustrations  given  in  the  preceding  exercise.  You  will  therefore  write  at  the  top  of  each 
of  the  next  two  pages  of  your  Cash  Book  the  month  and  year,  "February,  189-,"  and  place 
all  of  the  receipts  of  cash  on  the  left-hand,  or  debit  side,  and  all  of  the  payments  of  cash 
on  the  right-hand,  or  credit  side. 

It  is  suggested  that  you  rule  a  Cash  Book  on  paper,  and  enter  these  items  upon  it  as  they  should  appear 
in  your  book.  This  will  prevent  possible  errors  and  enable  you  to  give  your  Cash  Book  a  better  appearance 
than  it  would  probably  have  otherwise. 

SERIES  OF  TRANSACTIONS. 
February,  190-, 

1.  Commenced  business  this  day,  investing  cash,  $1500. 

2.  Bought,  for  cash,  30  one-eighth  barrel  sacks  of  Flour,  at  60^  per  sack,  $18. 

3.  Sold,  for  cash,  12  sacks  of  Flour,  at  70^,  $8.40. 

4.  Sold,  for  cash,  10  sacks  of  Flour,  at  65^,  $6.50. 

5.  Bought,  for  cash,  125  one-eighth  barrel  sacks  of  Flour,  at  585ZS,  $72.50. 

7.  Sold,  for  cash,  30  sacks  of  Flour,  at  65^,  $19.50.^ 

8.  Sold,  for  cash,  42  sacks  of  Flour,  at  64^,  $26.88. 

9.  Sold,  for  cash,  16  sacks  of  Flour,  at  65^5,  $10.40. 

11.  Bought,  for  cash,  100  one-eighth  barrel  sacks  of  Flour,  at  59^,  $59. 

12.  Sold,  for  cash,  30  sacks  of  Flour,  at  65^,  $19.50. 
14.  Sold,  for  cash,  18  sacks  of  Flour,  at  66?!,  $11.88. 
16.  Sold,  for  cash,  25  sacks  of  Flour,  at  65^,  $16.25. 
19.  Bought,  for  cash,  300  bushels  of  Com,  at  55^,  $165. 
21.  Sold,  for  cash,  150  bushels  of  Corn,  at  60^,  $90. 

23.  Sold,  for  cash,  15  sacks  of  Flour,  at  64^,  $9.60. 

25.  Sold,  for  cash,  50  bushels  of  Corn,  at  62^,  $31. 

27.  Bought,  for  cash,  100  one-eighth  barrel  sacks  of  Flour,  at  55^,  $55. 

29.  Bought,  for  cash,  250  bushels  of  Corn,  at  54^,  $135. 

After  the  foregoing  items  have  been  entered,  the  Cash  Book  should  be  ruled  up  and  the 
footings  brought  down  as  explained  under  "Balancing  the  Cash  Book"  on  page  10.  The 
footing  of  the  debit  side  should  be  $1749.91,  and  of  the  credit  side,  $504.50,  and  the  differ- 
ence (which  should  be  placed  on  the  right-hand  side  in  red  ink),  should  be  $1245.41. 


12  8IN0LE  ENTRY  BOOKKEEPING. 

The  JouRJsrAL. 

The  Journal^  as  stated  on  page  5,  is  designed  to  contain  all  debits  and  credits  to 
persons  arising  from  transactions  with  such  persons;  and  such  debits  and  credits  should  be 
accompanied  by  clear  and  complete  explanations  of  the  transactions.  To  avoid  errors  it  is 
of  the  utmost  importance  that  the  entries  be  made  immediately  after  the  transaction  occurs; 
indeed,  it  is  a  matter  of  practice  with  careful  book-keepers  never  to  receipt  a  bill,  pay  an 
account,  or  complete  any  important  transaction  until  a  record  of  some  kind  has  been  made. 


Third  Exercise. 

You  will  now  make  the  Journal  entries  required  in  the  following  transactions,  which 
should  correspond  with  the  Journal  given  on  page  13.  The  Cash  Book  entries  will  be 
omitted. 

SERIES  OF  TRANSACTION'S. 
March,   190-, 

1.  Commenced  business  this  day  with  a  cash  capital  of  llOOO.     [See  Rule  1,  part  a,  on 

page  7,  and  also  the  form  of  the  entry  in  the  Journal,  illustrated  on  page  13.) 

2.  Bought  of  John  Snow,  on  account  at  10  days,  100  barrels  of  Flour,  at  $5:25,  $525. 

{See  Rule  4,  part  a,  page  7,  and  also  the  proper  entry  in  the  Journal,  illustrated  on 
page  13.) 

3.  Sold  Hiram  J.  Rice,  on  account  at  5  days,  50  barrels  of  Flour,  at  $6,  $300.     {See  Rule 

3,  part  a,  page  7,  and  the  entry  for  March  S  in  the  Journal,  illustrated  on  page  13.) 

4.  Bought  of  S.  M.  Baker,  on  account  at  10  days,  250  barrels  of  Apples,  at  $1.50,  $375. 

{Rule  Jf,  'part  a,  page  7;  Journal  illustrated,  page  13.)    . 

6.  Bought  of  Nathan  Goodman,  a  Horse  and  Wagon  for  the  use  of  the  business,  for  which 

I  have  agreed  to  pay  $150  on  the  15th  inst.     (  Rule  J^,  part  a,  page  7;  Journal  illus- 
trated, page  13.) 

7.  Sold  D.  W.  Fenner,  on  account  at  10  days,  50  barrels  of  Apples,  at  $1.75,  $87.50. 

{Rule  3,  part  a,  page  7;  Journal  illustrated,  page  13.) 

8.  Received,  cash,  of  Hiram  J.  Rice  for  the  50  barrels  of  Apples  purchased  on  the  3rd  inst., 

$300.     {Rule  Jf,  part  h,  page  7;  illustration  page  13.) 

9.  Bought  of  C.  G,  Weaver,  on  account  at  30  days,  50  bushels  of  Oats,  at  40  cents,  $20, 

and  35  bushels  of  Corn,  at  62  cents,  $21.70;  total,  $41.70.     {Rtile  J^,  part  a,  page  7; 
illustration,  page  13. ) 

12.     Paid  John  Snow,  cash,  for  the  100  barrels  of  Flour  purchased  of  him  on  the  2nd  inst., 
$525.     {Rule  3,  part  h.) 

li.     Paid  S.  M.  Baker  the  amount  due  him  for  bill  of  the  4th  inst.,  in  cash,  $375. 

15.     Paid  Nathan  Goodman,  cash,  for  the  Horse  and  Wagon  purchased  on  the  6th  inst.,  $150. 

17.     Received,  cash,  of  D.  W.  Fenner,  in  full  of  his  purchase  of  the  7th  inst.,  $87.50.     {Rule 
Jf,  part  h.) 


SINGLE  ENTRY  BOOK-KEEPING. 


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14.  SINGLE  ENTRY  BOOK-KEEPING. 

Fourth  Exercise. 

You  will  now  make  the  Journal  entries  in  the  following  series  of  transactions  as 
instructed  in  the  preceding  exercise.  The  Journal  is  not  given,  but  illustrations  will  b6 
found  on  pages  15  and  16,  containing  transactions  similar  in  character,  and  involving  pre- 
cisely the  same  principles  as  those  which  are  to  be  journalized;  and  as  each  of  these  similar 
transactions  is  accompanied  by  its  proper  Journal  entry,  it  is  believed  that  no  further  aid 
in  performing  this  work  will  be  required.  It  is  suggested  that  you  make  yourself  inde- 
pendent of  such  aid  as  soon  as  possible.  This  may  be  done  by  studying  the  rules  referred  to 
in  connection  with  the  entries  given  as  aids.     The  Cash  Book  entries  will  be  omitted. 


SERIES  OE  TRANSACTIONS. 
April,  190-, 

1.  Commenced  business  this  day  with  a  cash  capital  of  $2000.     {See  Example  JVo.  1, 

page  15.) 

2.  Bought  of  Wm.  Hamilton,  on  account  at  10  days,  200  bbls.  of  Flour,  at  $5.50,  $1100. 

{See  Example  No.  2,  page  15.) 

3.  Sold  L.  H.  Eobinson,  on  account  at  15  days,  50  bbls.  of  Flour,  at  $6.25,  $312.50.     {See 

Example  3,  page  15. ) 

5.  Bought  of  P.  W.  Manning,  on  account  at  15  days,  300  bush,  of  Corn,  at  h^<p,  $150. 

{See  Example  2,  page  15. ) 

6.  Sold  M.  S.  Hastings,  on  account  at  20  days,  25  bbls.  of  Flour,  at  $6.15,  $153.75,  and 

50  bush,  of  Corn,  at  55^,  $27.50;  total,  $181.25.     {Ex.  4,  page  15.) 

8.  Bought  of  D.  A.  Watson,  on  account  at  15  days,  100  bbls.  of  Flour,  at  $5.25,  $525, 

and  250  bush,  of  Oats,  at  40^,  $100;  total  $625.     {Ex.  5,  page  15.) 

9.  Sold  John  Benham  150  bush,  of  Oats,  at  46^,  $69.     Eeceived,  cash,  $40;  balance  to  be 

paid  on  the  25th  inst.     {Ex.  6,  page  16.) 

10.     Bought  of  Hatch  &  Crane,  300  bbls.  of  Flour,  at  $5.20,  $1560.    Paid,  cash,  $500;  balance 
to  be  paid  in  20  days.     {Ex.  7,  page  16.) 

12.  Paid  Wm.  Hamilton  $1100,  cash,  in  full  of  purchase  of  the  2nd  inst.    {Ex.  8,  page  16.) 

13.  Bought  of  S.  H.  Porter,  a  Horse  and  Wagon  for  the  use  of  the  business,  for  which  I 

agreed  to  pay  $225  in  30  days.     {Ex.  9,  page  16.) 

18.     Keceived,  cash,  of  L.  H.  Robinson,  in  full  of  his  purchase  of  the  3rd  inst.,  $312.50. 
{Ex.  10,  page  16.) 

20.     Paid  P.  W.  Manning,  cash,  in  full  of  my  purchase  of  the  5th  inst.,  $150.     {Ex.  8, 
page  16.) 

23.     Paid  D.  A.  Watson,  cash,  in  full  of  my  purchase  of  the  8th  inst.,  $625.    {Ex.  8,  page  16. ) 

25.  Received,  cash,  of  John  Benham,  in  full  of  balance  of  his  purchase  of  the  9th  inst., 

$29.     {Ex.  11,  page  16.) 

26.  Received,  cash,  of  M.  S.  Hastings,  in  full  of  his  purchase  of  the  6th  inst.,  $181.25. 

{Ex.  10,  page  16.) 


SINGLE  ENTRY  BOOK-KEEPING. 

ILLUSTRATIOI^S. 


15 


The  following  transactions  are  similar  in  character  to  those  contained  in  the  Fourth 
Exercise,  and  the  Journal  entries  are  given,  together  with  appropriate  explanations,  so  that 
by  comparing  the  transactions  irf  the  Fourth  Exercise  with  these,  it  is  believed  you  will  be 
enabled  to  make  the  Journal  entries  required.  You  will  consult  the  Eules  for  Journalizing 
referred  to,  so  that  upon  the  completion  of  the  work  they  may  be  firmly  fixed  in  your  mind. 


Transaction. 


EXAMPLE   No.  1. 
April,  190-, 


Journal  Entry. 


Commenced  business  this  day  with  a  cash 
capital  of  $3000. 

{See  Rule  1,  part  a,  page  7.) 


Student, 
Investment, 


Cr. 


3000 


EXAMPLE  No.  2. 


Transaction. 


Journal  Entry. 


2. 
Bought  of  Nathaniel  Wood,  1200  bbls.  of 
Apples,  at  $2,  on  acct.  at  10  days,  12400. 
(See  Rule  4,  part  a,  page  7. ) 


2. 
Nathaniel  Wood,  Cr. 

1200  bbls.  Apples  at  2.00. 
Due  in  10  days. 


2400 


EXAMPLE  No.  3. 


Transaction. 


Journal  Entry. 


3. 
Sold  Byron  Sage,  on  acct.   at  15  days, 
600  bbls.  of  Apples,  at  $2.25,  $1125. 
{See  Rule  S,  part  a,  page  7.) 


Byron  Sage,  Dr. 

500  bbls.  Apples  at  2.25. 
Due  in  15  days. 


1125 


EXAMPLE  No.  4. 


Transaction. 


Journal  Entry. 


6. 

Sold  A.  W.  Payne,  on  acct.  at  20  days, 
500  bbls.  of  Apples,  at  $2.25,  $1125,  and 
300  bbls.  of  Potatoes,  at  $1.25,  $375;  total, 
$1500. 

{See  Rule  S,  part  a,  page  7.) 


6. 
A.  W.  Payne,  Dr. 

500  bbls.  Apples  at  2.25. 
300  "  Potatoes  at  1.25. 
Due  in  20  days. 


1125 
375 


1500 


Transaction. 


EXAMPLE  No.  5. 


Journal  Entry. 


Bought  of  Chas.  Eoberts,  on  acct.  at  15 
days,  1000  bbls.  Apples,  at  $2,  $2000;  and 
500  bbls.  Potatoes,  at  $1.10,  $550;  total, 
$2550v 

{See  Rule  J^,  part  a,  page  7.) 


Chas.  Eoberts,  Cr. 

1000  bbls.  Apples  at  2.00. 
500  /'  Potatoes  at  1.10. 
Due  in  15  days. 


2000 
550 


2550 


16 


SINGLE  ENTRY  BOOK-KEEPING. 
EXAMPLE  No.  6. 


Transaction. 

Journal  Entry. 

9. 

Sold  Benj.  Johnson  350  bbls.  of  Apples,  at 
$2.50,  $875.  Eeceived,  cash,  $500;  balance 
to  be  paid  on  the  25th  inst. 

{See  Rule  3,  part  a,  page  7.) 

{See  Rule  J/.,  part  h,  page  7. ) 

9. 
Benj.  Johnson,    '             Dr. 
;      350  bbls.  Apples  at   2.50. 
(I 

Benj.  Johnson,                 Cr. 
Dash  on  above. 

i 

875 
500 

EXAMPLE   No.   7. 


Transaction. 

Journal  Entry. 

10. 

10. 

Bought  of  Howe  &  Ward,  1000  bbls.  of 

Howe  &  Ward,                 Cr. 

2000 

Apples,    at   $2,    $2000.     Paid  cash,  $1000 ; 

1000  bbls.  Apples  at  2.00. 

balance  to  be  paid  in  15  days. 
{See  Rule  J/.,  part  a,  page  7.) 
{See  Rule  3,  part  h,  page  7. ) 

Howe  &  Ward,                 Dr. 
Cash  on  above. 

1000 

EXAMPLH:   No.  8. 


Transaction, 


Journal  Entry. 


12. 
Paid  Nathaniel   Wood,   $1200,   cash,  in 
full  of  purchase  of  the  2nd  inst. 
{See  Rule  3,  part  h,  page  7.) 


12. 
Nathaniel  Wood,  Dr. 

Cash  in  full  of  acct. 


1200 


EXAMPLE  No.  9. 


Transaction. 


Journal  Entry. 


13. 

Bought  of  D.  J.  Warner,  a  Horse  and 
Wagon  for  the  use  of  the  business,  for  which 
I  agreed  to  pay  $250  in  60  days. 

{See  Rule  4-,  part  a,  page  7.) 

13. 
D.  J.  Warner, 
Horse  and  Wagon. 
Due  in  60  days. 

Cr. 

250 

EXAMPLE   No.  10. 


Transaction. 

Journal  Entry. 

18. 
Received,  cash,  of  Byron  Sage,  in  full  of 
his  purchase  of  the  3rd  inst.,  $1125. 
{See  Rule  4,  part  b,  page  7.) 

18. 
Byron  Sage,                     Cr. 
Cash  in  full  of  bill  of  the 
3rd  inst. 

1125 

EXAMPLE   No.  11. 


Transaction. 


Journal  Entry. 


25. 

Eeceived,  cash,  of  Benj.  Johnson,  in  full 
of  the  balance  of  his  purchase  of  the  9th 
inst.,  $375. 

(See  Rule  U,  part  h,  j)age  7.) 


.25. 
Benj.  Johnson,  Cr. 

Cash  for  balance  of  bill 
of  the  9th  inst. 


375 


SINGLE  ENTRY  BOOK-KEEPING. 


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JOURlSrAL  KWD   CASH  BOOK 

In  the  following  exercise  the  Journal  and  Cash  Book  are  both  to  be  used.  You  will 
make  the  entries  in  these  books  as  directed  in  the  General  Eules  for  Single  Entry  on  page  5, 
and  as  illustrated  on  pages  17,  18,  and  19.  Consult  the  Eules,  when  so  directed,  in  order 
that  they  may  become  so  firmly  fixed  in  ypur  mind  as  to  make  it  unnecessary  to  refer  to 
them  hereafter. 

Fifth  Exercise. 

SERIES   OE   TRANSACTIONS. 
May,  190- 

1.  Commenced  business  this  day  with  a  cash  capital  of  $2500.     {Journal  and  Cash  Book. 

See  Rule  1,  part  a,  page  7,  Rule  6,  page  7,  and  also  illustrations  on  pages  17  and  18.) 

2.  Bought  of  Gardner  Allen,  Jr.,  on  account  at  10  days,  200  bbls.  of  Flour,  at  15.50, 

11100.     {Journal.     See  Rule  ^,  part  a,  page  7,  and  illustration  on  page  17.) 

3.  Bought  of  Henry  "Walker,  for  cash,  100  bbls.  of  Salt,  at  $1,  $100.     {OasTi  Book.    Rule 

6,  page  7.) 

4.  Sold  J.  Wilson,  on  account  at  10  days,  100  bbls.  of  Flour,  at  $6.25,  $625.     {Journal. 

Rule  S,  part  a,  page  7.) 

6.  Sold  P.  R.  Smith,  for  cash,  25  bbls.  of  Salt,  at  $1.2^,  $31.25.     {Cash  Book.     Rule  6, 

page  7.) 

7.  Bought  of  Nicholas  Boyer,  on  account  at  15  days,  500  bbls.  of  Apples,  at  $1.50,  $750. 

{Journal.     Rule  4,  part  a,  page  7. ) 

8.  Sold  M.  D.  Young,  for  cash,  125  bbls.  of  Apples,  at  $1.75,  $218.75.     {Cash  Book. 

Rules.) 

10.  Bought  of  A.  B.  Clark  &  Co.,  forcash,  100  bush,  of  Corn,  at  60  cents,  $60.     {Cash  Book. 

Ruled.) 

11.  Sold   J.Wilson,    on  account  at  30  days,  100  bbls.  of  Apples,  at  $1.80,  $180.    {Journal, 

Rule  S,  part  a. ) 

12.  Paid  Gardner  Allen,  Jr.,  cash,  in  full  of  bill  of  the  2nd  inst.,  $1100.    {Journal  and  Cash 

Book.     Rule  3,  part  h,  and  Rule  6.) 


V 


SINGLE  ENTRY  BOOK-KEEPING. 


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14.  Eeceived,  cash,  of  J.  Wilson,  in  full  of  bill  of  the  4th  inst.,  $625.     {Journal  and  Cash 

Booh.     Rule  4,  part  h,  page  7.     Debit  side  of  Cash  Book,  Rule  5,  page  7. ) 

15.  Sold  Seymour  Gates,  on  account  at  5  days,  125  bbls.  of  Apples,  at  $1.70,  1312.50; 

20  bbls.  of  Flour,  at  $6.20,  $124;  total,  $336.50.     {Journal.    Rule  3,  part  a,  page  7.) 

The  special  inslmictions  and  the  references  to  rules  will  be  omitted  in  the  remainder  of  this  exercise,  as 
it  is  believed  that  you  will  now  be  able  to  continue  the  work  without  such  assistance.  Should  you  be 
uncertain  at  to  the  correctness  of  an  entry,  refer  to  the  Gteneral  Rules  on  page  7,  or  to  a  similar  transaction 
in  the  first  part  of  this  exercise. 

17.  ^  Bought  of  Gardner  Allen,  Jr.,  on  account  at  15  days,  300  bush,  of  Oats,  at  42  cents,  $126. 

18.  Sold,  for  cash,  150  bush,  of  Oats,  at  48  cents,  $72. 

19.  Bought,  for  cash,  2  tons  of  Coal,  for  use  of  store,  at  $5,  $10. 

20.  Received,  cash,  of  Seymour  Gates,  in  full  of  bill  of  the  15th  inst.,  $336.50. 

22.  '  Paid  Nicholas  Boyer,  cash,  in  full  of  account,  $750. 

23.  Sold  Seymour  Gates,  6n  account  at  10  days,  50  bbls.  of  Flour,  at  $5,75,  $287.50. 

25.  *  Sold  J.  Wilson,  on  account  at  5  days,  50  bbls.  of  Flour,  at  $6,  $300,  and  25  bbls.  of 

Salt,  at  $1.30,  $32.50;  total,  $332.50. 

26.  Bought  of  Gardner  Allen,  Jr.,  on  account  at  15  days,  200  bbls.  of  Flour,  at  $5.50, 

$1100,  and  200  bush,  of  Oats,  at  42  cents,  $84;  total,  $1184. 
28.     Sold  Seymour  Gates,  on  account,  100  bbls.  of  Flour,  at  $6,  $600,  and  100  bush,  of 

Oats,  at  48  cents,  $48;  total,  $648. 
30.     Eeceived,  cash,  of  J.  Wilson,  in  full  of  bill  of  the  25th  inst.,  $332.50. 

After  completing  the  above  work  you  will  next  balance  the  Cash  Book.  Should  you  need 
assistance  in  doing  so,  refer  to  the  instructions  for  Balancing  the  Cash  Book,  on  pages  10 
and  11.  Take  special  pains  with  the  ruling.  Remember  that  all  ruling  should  be  done 
with  red  ink.  The  footing  of  the  debit  side  of  the  Cash  Book  should  be  $4116,  and  of 
the  credit  side. 


QuESTio:rNrs. 


Page  8. — "How  many  methods  of  keeping  a. Cash  Book  are  there?  ''""Describe  each 
method.  Page^  10-11. — '^''Describe  the  manner  of  "balancing"  a  Cash  Book  in  which 
opposite  pages  are  used  for  the  receipts  and  payments.  What  colored  ink  should  be  used 
for  rulings?    Page  7. — Give  the  General  Rules  for  Single  Entry  Book-keeping. 


20 


SINGLE  ENTRY  BOOK-KEEPING. 


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SINGLE  ENTRY  BOOKKEEPING.  21 

JouEi^AL,  Cash  Book,  ajs^d  Ledger 

SHOWING  RESULTS. 

*  In  the  following  set  the  Journal  and  Cash  Book  are  to  be  used  the  same  as  in  the 
preceding  exercise ;  that  is,  all  cash  entries  will  be  made  in  the  Cash  Book,  and  all  others 
in  the  Journal ;  and  ^  it  is  designed  that  results  shall  be  shown  at  the  close  of  the  month. 
That  is,  '  it  shall  be  shown  whether  there  is  a  Gain  or  a  Loss ;  what  the  amount  of  such  gain 
or  loss  is ;  the  amount  of  the  Resources  and  Liabilities,  and  of  what  they  consist ;  and  finally, 
what  the  interest  of  the  proprietor  in  the  business  is  at  that  date. 

*  To  ascertain  a  part  of  these  facts  it  will  be  necessary  to  introduce  the  Ledger,  and  to 
post  to  that  book  "all  of  the  debits  and  credits  to  persons,  so  as  'to  enable  the  proprietor  to 
know  just  how  much  he  owes  others  as  well  as  how  much  others  owe  him.  {See  description 
of  the  Ledger  on  page  6») 

Sixth  Exeecise. 

SERIES   OF   TRANSACTION'S. 
June,    190-, 

1.  Commenced  business  this  day,  investing  $3500,  in  cash.     {Journal  and  Cash  Booh.) 

"      I  owe  Jones  &  Bro.,  on  account,  due  June  12,  $376.85.     {Journal,  Rule  2,  part  a.     See 
illustration,  page  20.) 

2.  Paid  1  month's  rent  of  store  in  advance,  in  cash,  $50.     ( Cash  Booh,  Rule  6,  page  7. ) 

3.  Bought  a  Horse  and  "Wagon  for  use  of  store,  for  which  I  paid  cash,  $145. 

4.  Bought  of  Wm.  Simpson,  on  account  at  10  days,  100  bbls.  Flour,  at  $5.50,  $550.    {Rul^ 

4,  part  a. ) 

6.  Sold  John  Hammond  25  bbls.  Flour,  at  $6.25,  $156.25.     Received  $100,  cash;  balance, 

$56.25,  to  be  paid  on  the  20th.     {Rule  3,  part  a.    Rule  U,  part  h.    Rule  6. ) 

'  When  a  purchase  is  partly  paid  for  at  the  time  it  is  made,  as  in  the  foregoing,  it  is  customary  to  debit 
the  purchaser  for  the  entire  amount  of  the  bill,  and  credit  him  for  the  payment  made,  instead  of  ^  merely 
debiting  him  for  the  amount  remaining  unpaid.  '  It  will  be  apparent  that  the  result  would  be  the  same  by 
either  plan,  but  '"  the  former  makes  a  more  complete  record  of  the  transaction. 

7.  Bought  of  Robert  Wentworth,  for  cash,  300  bush.  Oats,  at  40^,  $120;  250  bush.  Corn, 

at  60^,  $150;  total,  $270. 

8.  Sold  Chas.  B.  Corning,  60  bbls.  Flour,  at  $6.10,  $366.     Received  in  part  payment  $150, 

cash;  balance,  $216,  to  be  paid  in  10  days.     {Journal  and  Cash  Booh.) 

9.  Bought  of  Wm.  Simpson,  300  bbls.  Flour,  at  $5.40,  $1620.     Paid  one-half,  $810,  in 

cash;  balance  to  be  paid  in  30  days.     {Rule  4,  part  a.    Rule  3,  part  h.    See  page  42.) 

Credit  Wm.  Simpson  with  the  entire  amount  of  the  purchase,  and  debit  him  with  the  payment. 

10.  Sold  John  Hammond  25  bbls.  Flour,  at  $6.25,  $156.25;   100  bush.  Oats,  at  45^,  $45; 

100  bush.  Corn,  at  70^,  $70;  total,  $271.25.     Received  in  part  payment,  $150,  cash; 
balance,  $121.25,  to  be  paid  in  90  days. 

11.  Bought  of  Robert  Wentworth,  200  bush.  0ats,  at  40^,  $80;   250  bush.  Corn,  at  60^, 

$150;  total,  $230.     Paid  $125,,  cash;  balance,  $105,  due  in  15  days. 

12.  Paid  Jones  &  Bro.,  cash,  for  the  amount  due  them  on  account,  $376.85. 

13.  Sold  Myron  G.  Reed  100  busb.  Oats,  at  48^,  $48;  75  bush.  Corn,  at  65<^,  $48.75;  total, 

$96.75.     Received  $50,  cash;  balance,  $46.75,  to  be  paid  in  15  days. 


22  SINGLE  ENTRY  BOOKKEEPING. 

14.  Paid  Wm.  Simpson,  cash,  for  amount  of  the  purchase  of  the  4th  inst.,  due  to-day,  $550. 

15.  Bought  of  Robert  "Wentworth,  300  bush.  Oats,  at  40j#,  1120;  400  bush.  Corn,  at  60^, 
v"  $240;  total,  $360.     Paid  one-half  of  the  bill  $180,  in  cash;  balance  to  be  paid  in  30 

days.     i^Rule  4,  part  a.     Rule  3,  part  h.     Rule  6.) 
^        16.     Sold  Geo.  W.  Young,  on  account  at  10  days,  200  bush.  Oats,  at  50j^,  $100;  150  bush. 
^  Corn,  at  70^,  $i05;  total,  $205. 

17.  Paid,  cash,  for  a  Harness,  $17.25. 

18.  Received,  cash,  of  Chas.  B.  Coming,  for  balance  of  bill  of  the  8th  inst.,  $216. 

20.  Received,  cash,  of  John  Hammond,  for  balance  of  bill  of  the  5th  inst.,  $56.25. 

21.  Sold  Chas.  B.  Corning,  50  bbls.  Flour,  at  $6.50,  $325.     Received,  cash,  $175;  balance 

to  be  paid  in  30  days. 

22.  Sold  John  Hammond,  on  account  at  10  days,  100  bush.  Oats,  at  48jz5,  $48;  75  bush. 

Com  at  70^,  $52.50. 

25.  Bought,  for  cash, '300  bbls.  Flour,  at  $5.25. 

26.  Paid  Robert  Wentworth,  cash,  for  balance  of  bill  of  the  11th  inst.,  $105. 

"      Received,  cash,  of  Geo.  "W.  Young,  in  full  of  his  purchase  of  the  16th  inst.,  $205. 

27.  Sold  Chas.  B.  Corning  50  bbls.  Flour,  at  $6,  $300 ;   100  bush,  Oats,  at  48^,  $48  ;  100 

bush.  Corn,  at  65^,  $65;  total,  $413.     Received,  cash,  $200;  balance  to  be  paid  in 
10  days. 

28.  Received,  cash,  of  Myron  G.  Reed,  in  full  of  balance  of  bill  of  the  13th  inst.,  $46.75. 

30.     Paid  clerk's  salary  for  the  month,  in  cash,  $60. 

^'^^^'^ 

You  will  now  balance  and  rule  up  your  Cash  Book,  as  illustrated  on  pages  8  and  9.     Your 

balance  of  cash  should  be  $584.90.  You  will  then  open  your  Ledger  and  post  to  that  book 
all  of  the  debits  and  credits  to  persons  contained  in  the  Journal,  as  stated  at  the  opening  of 
this  month's  business,  viz. :  by  "  opening  an  account  in  the  Ledger  with  each  person  whose 
name  appears  in  the  Journal,  and  placing  the  amounts  for  which  he  is  debited  on  the  left- 
hand  or  Dr.  side  of  his  account,  and  the  amounts  for  which  he  is  credited  on  the  right-hand 
or  Cr.  side  of  his  account. 

That  you  may  be  able  to  perform  the  posting  required  in  this  set  with  9§rtainty  as  to 
results,  as  well  as  to  a  perfect  understanding  of  the  process,  the  following  minute 


In"struotios"s  for  P0STII^J"G, 

are  given,  and  you  are  to  follow  those  instructions  with  the  closest  fidelity,  performing  the 
work  step  by  step  as  directed. 

June  1.     {First  Entry.) 

The  first  account  opened  in  the  Ledger  is  usually,  although  not  necessarily,  that  of  the 
proprietor  of  the  business.  Usually  the  proprietor's  name  appears  in  the  first  Journal  entry, 
hence  his  account  is  naturally  the  first  to  be  opened  in  the  Ledger.  "  You  will  therefore 
write  at  the  center  of  the  blue  line  at  the  top  of  the  first  page  in  your  Ledger,  in  a  bold,  plain 
hand,  your  name.  {See  illustration  on  page  26.)  "Next,  on  the  right-hand,  or  credit  side, 
of  the  heavy  line  in  the  center  of  the  page,  write,  in  the  date  column,  the  date,  June  1,  "  in 
the  explanation  column,  the  explanation.  Investment,  "in  the  journal  page  column,  the  page 
of  the  Journal,  1,  and  "in  the  amount  column  the  amount,  $8500.  "Then,  in  the  Journal, 
opposite  your  name,  you  will  write  the  page  of  the  Ledger  to  which  this  entry  has  been 


SINGLE  ENTRY  BOOK-KEEPING.  23 

posted,  1.    {See  illustrations  on  pages  20  and  26. )    This  completes  the  posting  of  your  invest- 
ment; but  it  still  remains  to  debit  your  account  with  the  amount  you  owe  Jones  &  Bro. 
You  will  therefore  post. 

June  1.     {Second  Entry.) 

by  writing  on  the  left-hand,  or  debit  side  of  your  account,  in  the  date  column,  the  date, 
June  1,  in  the  explanation  column,  Jones  S  Bro.,  in  the  journal  page  column,  the  page  of  the 
Journal,  1,  and  in  the  amount  column,  the  amount,  $376.85.  Then  check  this  posting  in 
the  Journal  by  placing  the  Ledger  page,  to  which  it  was  posted,  1,  in  the  check  column  in 
the  Journal  opposite  the  name  of  Jones  &  Bro.     {See  Journal  and  Ledger  illustrations.)' 

Juke  1.     {Third  Entry.) 

Next,  Jones  &  Bro.  should  be  credited  in  the  Ledger  for  the  amount  which  you  owe  them, 
as  the  Ledger  must  be  made  to  show  all  amounts  in  which  you  are  indebted  to  others,  as  well 
as  all  amounts  which  others  owe  you.  You  will  therefore  open  an  account  with  Jones  & 
Bro.,  in  a  bold,  plain  hand,  half  way  between  the  top  and  bottom  of  page  1,  in  the  Ledger, 
as  illustrated  on  page  26.  Then,  write  in  the  date  column,  on  the  first  line  below  Jones  & 
Bro.,  on  the  right-hand,  or  credit  side  of  the  heavy  center  line,  the  date,  June  1,  in  the  expla- 
nation column.  Balance  of  Acct.,  in  the  journal  page  column  the  page  of  the  Journal,  1,  and 
in  the  amount  column  the  amount,  $376.85.  You  will  then  check  the  entry  in  the  Journal, 
to  show  that  it  has  been  posted,  by  writing  the  page  of  the  Ledger  to  which  it  has  been 
posted,  1,  in  the  check  column  opposite  the  name  of  Jones  &  Bro.     {See  illustrations. ) 

Juke  4. 

^*  Open  an  account  with  Wm.  Simpson,  by  writing  his  name  in  a  bold,  plain  hand,  at  the 
top  of  page  2,  in  the  Ledger.  ^*  Then  enter  on  the  right-hand,  or  credit  side,  in  the  date 
column,  the  date,  June  U,  *"  in  the  explanation  column,  Mdse.,  *^  in  the  journal  page  column 
the  page  of  the  Journal,  1,  and  **  in  the  amount  column,  the  amount,  $550.  *®  Then  check 
this  in  the  Journal  by  writing  the  page  of  the  Ledger  to  which  it  has  been  posted,  2,  in  the 
check  column  opposite  the  name  of  Wm.  Simpson.     {See  Journal  and  Ledger  illustrations.) 

Juke  5. 

Open  an  account  with  John  Hammond  half  way  between  the  top  and  bottom  of  page  2. 
You  will  observe  that  on  this  date  John  Hammond  is  debited  for  the  cost  of  a  quantity  of 
merchandise  bought  of  you,  and  that  he  is  credited  for  a  cash  payment  made  upon  it.  You 
will  therefore  enter  on  the  left-hand,  or  debit  side  of  this  account,  in  the  date  column,  the 
date,  June  5,  in  the  explanation  column  the  explanation,  Mdse.,  in  the  journal  page  column 
the  page  of  the  Journal,  1,  and  in  the  amount  column,  the  amount,  $15^.25.  Then  check 
the  entry  in  the  Journal  by  placing  the  page  of  the  Ledger,  2,  in  the  check  column  opposite 
the  name  of  John  Hammond. 

Juke  5.     {Second  Entry.) 

In  the  preceding  entry  John  Hammond  was  debited  for  a  quantity  of  merchandise 
purchased,  and,  in  this  entry,  he  should  be  credited  for  a  payment  of  $100,  which  he  made 
upon  it.  You  will  therefore  enter  on  the  right-hand,  or  credit  side,  of  John  Hammond's 
account  in  the  Ledger,  the  date  of  this  entry,  June  5,  in  the  date  column,  the  page  of  the 
Journal,  1,  in  the  journal  page  column,  the  explanation.  Cash,  in  the  explanation  column, 
and  the  amount,  $100,  in  the  amount  column.  You  will  then  check  the  entry  in  the 
Journal,  to  show  that  it  has  been  posted,  by  writing  the  page  of  the  Ledger,  2,  in  the  check 
column  opposite  the  name  of  John  Hammond. 


24  SINGLE  ENTRY  BOOKKEEPING. 

June  8. 
Open  an  account  with  Chas.  B.  Corning  at  the  top  of  page  3.     Then  write  in  the  date 
column,  on  the  debit  side,  the  date,  June  8,  in  the  explanation  column,  Mdse.,  in  the  journal 
page  column,  the  page  of  the  Journal,  1,  and  in  the  amount  column,  the  amount,  $366,. 
Then  check  the  entry  in  the  Journal,  using  the  page  of  the  Ledger,  3,  as  before  directed. 

June  8.     {Second  Entry.) 
Enter  on  the  credit  side  of  Chas.  B.  Coming's  account  in  the  Ledger,  the  date,  June  8, 
the  explanation.  Cash,  the  page  of  the  Journal,  1,  and  the  amount,  $150.     Check  the  entry. 

JuxE  9. 
On  the  credit  side  of  Wm.  Simpson's  account  in  the  Ledger,  enter  the  date,  June  9,  the 
explanation,  Mdse.,  the  page  of  the  Journal,  1,  and  the  amount,  $1620.     Then  check  the 
entry  in  the  Journal  opposite  the  name  of  Wm.  Simpson,  using  the  page  of  the  Ledger,  2. 

June  9.     {Second  Entry.) 
On  the  debit  side  of  Wm.  Simpson's  account,  enter  the  date,  June  9,  the  explanation. 
Cash,  the  page  of  the  Journal,  1,  and  the  amount,  $810.     Then  check  the  entry  in  the 
Journal  opposite  the  name  of  Wm.  Simpson,  using  the  page  of  the  Ledger,  2. 

June  10. 
Enter  on  the  debit  side  of  John  Hammond's  account,  on  page  2  of  the  Ledger,  the  date  of 
the  entry,  June  10,  the  explanation,  Mdse.,  the  Journal  page,  2,  and  the  amount,  $271.26. 
Check  the  entry  in  the  Journal  as  before  directed. 

June  10.     {Second  Entry.) 
On  the  credit  side  of  John  Hammond's  account,  enter  the  date,  June  10,  the  explanation. 
Cash,  the  Journal  page,  2,  and  the  amount,  $150,  and  remember  to  check  the  entry. 

June  11. 
Open  an  account  with  Eobert  Wentworth,  in  the  middle  of  page  3,  and  credit  him  under 
this  date,  11,  Mdse.,  $230,  remembering  to  check  in  the  Ledger  with  Journal  page,  2,  and  in 
the  Journal  with  the  Ledger  page,  3. 

June  11.     {Second  Entry.) 
Debit  Robert  Wentworth  in  the  Ledger  under  this  date,  11,  Cash,  $125,  and  check  both 

in  Ledger  and  Journal. 

June  12. 

Debit  Jones  &  Bro.,  page  1,  Cash,  $376.85.     {See  notes  under  June  18  and  26,  page  25.) 

June  13. 
Open  an  account  with  Myron  G.  Reed,  at  the  top  of  page  4  of  the  Ledger,  and  debit  him 
under  this  date,  Mdse.,  $96.75.     Date  and  check,  both  in  Ledger  and  Journal. 

June  13.     {Second  Entry.) 
Credit  Myron  G.  Reed,  Cash,  $50.     Date  the  entry  and  make  the  proper  check  marks. 

June  14. 
Debit  Wm.  Simpson,  on  Ledger  page  2,  Cash,  $550.     Date  and  check  in  both  books. 

i,JUNE  15. 

Credit  Robert  Wentworth,  Ledger  page  3,  Mdse.,  $360.     Dateand  check. 


SINGLE  ENTRY  BOOK-KEEPING. 


25 


June  15.     {Second  Entry.) 
Debit  Eobert  Wentworth,  Ledger  page  3,  Cash,  $180.     Date  and  check. 

June  16. 
Open  an  account  with  Geo.  W.  Young  in  the  middle  of  page  4,  in  your  Ledger  and  debit 
him  under  this  date,  Mdse.,  $205. 

Juke  18. 

Credit  Chas.  B.  Corning,  Gash,  $216.     Remember  to  date  and  check  every  entry. 

^  When  an  account  in  the  Ledger  is  made  to  balance  by  a  payment,  as  is  the  case  with  that  of  Chas.  B. 
Corning,  it  should  be  ruled  up  and  footed  at  once.  ^^  When  several  entries  have  been  made  in  the  account,  a 
single  red  line  should  be  drawn  on  the  blue  line  immediately  under  the  amount  occupying  the  lowest  line  in 
the  account,  whether  debit  or  credit,  and  another  on  the  other  side  of  the  account  on  the  same  blue  line. 
These  lines  should  be  drawn  across  the  money  columns  only.  Then,  on  the  next  blue  line  below,  draw  a 
double  red  line  across  the  debit  date  column,  another  across  the  debit  check  column,  the  debit  money  column 
and  the  credit  date  column,  and  another  across  the  credit  check  column  and  credit  money  column.  You  will 
then  write  the  footings  of  the  account  between  the  rulings.     {See  iUvMration  below.) 


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June  20. 


Credit  John  Hammond,  Cash,  $56.25. 


June  21. 


Debit  Chas.  B.  Corning,  Mdse., 

June  21.     {Second  Entry.) 
Credit  Chas  B.  Corning,  Cash,  $175. 

June  22. 
Debit  John  Hammond,  Mdse.,  $100.50. 

June  26. 
Debit  Robert  Wentworth,  Cash,  $105. 

June  26.     {Second  Entry.) 
Credit  Geo.  W.  Young,  Cash, 


Rule  up  Geo,  W,  Young's  account.     *^  Since  there  is  but  one  entry  on  each  side,  the  double  lines  only 
will  be  necessary,  •''which  should  be  placed  on  the  blue  line  immediately  under  the  figures. 

June  27. 
Debit  Chas.  B.  Corning,  Mdse.,  $JflS. 

June  27.     {Second  Entry.) 
Credit  Chas.  B.  Corning,  Cash,  $200. 

June  28. 
Credit  Mjron  G.  Reed,  Cash,  $Jf.6.75.     {Rule  up  Reed's  account.) 


\ 


26 


SINGLE  ENTRY  BOOK-KEEPING. 


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SINGLE  ENTRY  BOOK-KEEPTNQ.  27 

RESULTS  OF  THE  BUSINESS. 

You  will  now  show  from  your  records  and  from  the  property  you  haye  on  hand,  what 
your  present  worth  is,  what  has  been  your  gain  or  loss,  and  of  what  your  property  at  present 
consists.  As  stated  on  page  6,  "the  Present  Worth  may  be  obtained  by  finding  the  difference 
between  the  amount  of  the  resources  and  the  amount  of  the  liabilities,  and  "the  Net  Gain 
or  Net  Loss  may  be  obtained  by  finding  the  difference  between  the  net  inyestment  and  the 
present  worth.  It  will  be  obvious  to  you  that  ^"the  Eesources  consist  of  debts  due  you,  and 
of  property,  of  whatever  character,  in  your  possession,  and  that  "  the  Liabilities  are  all  the 
debts  you  owe.     You  will  now  proceed  to  make  a  list  of  your  resources  and  liabilities. 

The  first  resources  to  be  considered  are  the  various  kinds  of  property  on  hand  which  are 
not  shown  by  the  books.  "  Such  property  is  estimated,  usually,  at  cost,  unless  there  has  been 
a  marked  change  in  its  value  since  it  was  purchased. 

Such  "a  list  of  stock  on  hand  is  called  an 

iNVEirroBY, 
which  in  this  case  consists  of 

490  bbls.  Flour,  at  $5.50, 2695.00 

200  bush.  Oats,  at  40  cents, 80.00 

400     '\     Corn,  at  60  cents, 240.00 

3015.00 

Horse  and  Wagon,  bought,  for  use  of  business, - 145.00 

Harness,  valued  at 15.00 

Total  amount  of  Inventory, 3175.00 

The  next  resource  is 

Cash. 

Amount  received,  shown  by  debit  side  of  Cash  Book, 4849. 00 

''        paid,             "        "  credit  *'     "      "        "     4264.10 

Amount  of  cash  on  hand, 584. 90 

The  remaining  resources  are 

Personal  Accounts  in  mt  favor. 

John  Hammond,  debit  of  his  Ledger  account, 528.00 

credit    "  "  " 306.25 

Balance  of  account,  my  favor, _. 221. 75 

Chas.  B.  Corning,  debit  of  his  Ledger  account, 738. 00 

credit    "  "  "       ^     375.00 

Balance  of  his  account,  my  favor, 363.00 

Total  personal  accounts  in  my  favor, 584. 75 

The  liabilities  are 

Personal  Accounts  which  I  have  to  pay. 

Wm.  Simpson,  credit  of  his  Ledger  account, 2170.00 

debit       "  "  "        1360.00 

Balance  of  account,  his  favor, 810.00 

Robert  Wentworth,  credit  of  his  Ledger  account, 590. 00 

debit       "  "  "        410.00 

Balance  of  account,  his  favor, ---  180.00 

Total  of  personal  accounts,  which  I  have  to  pay, 990.00 

\ 


28  *  SINGLE  ENTRY  BOOKKEEPING 

From  the  abore  list  of  resources  and  liabilities  a  complete  statement  of  the  property  and 
debts  of  the  business  may  be  made.     Such  a  statement  is  usually  and  properly  called  a 

STATEMENT  OE  RESOURCES  AND  LIABILITIES. 

RESOURCES. 

Inventory, 3175.00 

Personal  Accounts,  receivable, 584.75 

Cash,  balance  of  Cash  Book, 584. 90 

Total  Resources, 4344.65 

LIABILITIES. 

Personal  Accounts,  payable,  — — 990. 00 

My  Present  Worth, 3354.65 

Investment, 3500. 00 

Due  Jones  &  Bro. , 376. 85 

Net  Investment, 3123,15 

Net  gain  for  the  month, 231.50 

"  To  make  your  account  in  the  Ledger  show  what  it  should,  viz. :  your  real  present  interest 
in  the  business,  it  will  now  be  necessary  to  place  on  the  credit  side  of  that  account  the  net 
gain,  as  shown  above.  You  will  therefore  write  in  black  ink  on  the  right-hand,  or  credit  side 
of  your  account  the  date,  June  30,  for  explanation.  Net  Gain,  and  the  amount,  $231.50. 
(See  illustration  on  opposite  page.) 

The  difference  between  the  sides  of  your  account  will  now  show  your  present  worth, 
as  exhibited  by  the  Statement  of  Resources  and  Liabilities,  viz.:  $3354.65.  This  amount 
should  be  placed  on  the  debit  side  as  follows:  Write  in  the  date  column  in  red  ink  the 
date,  June  30,  in  the  explanation  column.  Present  Worth,  in  the  check  column,  1  (as  the 
amount  is  to  be  transferred  below  the  rulings  on  the  opposite  side  of  your  account,  which  is 
on  page  1  of  the  Ledger),  and  in  the  amount  column,  the  amount,  $33S4.65.  {See  illustra- 
tion on  opposite  page.)  Next  rule  and  foot  the  account  as  follows:  Draw  one  red  litie  across 
the  money  column  on  both  sides  of  the  account  and  directly  on  the  blue  line  upon  which  the 
net  gain  was  written  {see  illustration  on  opposite  page);  now  rule  two  red  lines,  one  on  the 
next  blue  line  below  and  the  other  immediately  under  it,  extending  the  lines  across,  first,  the 
debit  date  column;  second,  across  the  debit  check  column  and  the  credit  date  column;  third, 
across  the  credit  check  and  credit  money  columns  —  in  other  words,  rule  across  the  entire 
width  of  the  page,  excepting  across  the  explanation  columns.  {See  illustration  on  opposite 
page.)  Next  write  the  footing  of  the  account  in  the  money  column,  between  the  single  and 
double  rulings.  Next  transfer  the  present  worth  below  the  rulings  on  the  credit  side  of  the 
account  by  writing  in  black  ink  in  the  date  column,  July  1,  as  this  is  your  capital  at  the 
beginning  of  July,  in  the  explanation  column.  Present  Worth,  in  the  check  column,  1,  to 
indicate  the  page  of  the  Ledger  from  which  this  was  transferred,  and  in  the  amount  column 
the  amount,  $335^.65. 

You  will  now  observe  that  your  account  in  the  Ledger  has  been  made  to  show  your 
interest  in  the  business  on  June  30th. 

'*  It  should  not  be  inferred  that  it  is  customary  in  business  to  make  a  statement  of  resources  and  liabilities 
and  show  results  as  often  as  once  a  month.  Semi-yearly  or  yearly  statements  are  regarded  sufficiently 
frequent.  It  has  been  shown  that  to  make  such  a  statement  it  is  necessary  to  take  an  inventory,  which,  in 
the  case  of  a  large  stock  of  mixed  goods,  is  attended  with  so  much  labor  that  frequent  exhibits  are  wholly 
impracticable. 


SINGLE  ENTRY  BOOK-KEEPING. 


29 


.J^^^-t^/a^^^ 


C^.^^>t^0Ld 


Questions  upon  some  of  the  principles  involved  in  the  preceding  exercise  are  given  below,  and  you 
should  be  prepared  to  answer  them  if  called  upon  to  do  so.  Before  proceeding  further,  therefore,  study 
carefully  the  answers  to  the  following 

^  QUESTIOl^S. 

Page  21. — '  How  are  the  Journal  and  Cash  Book  used  in  this  set?  '  What  is  designed  to 
be  shown  at  the  close  of  the  month?  '  Explain  what  is  meant  by  results.  *  What  additional 
book  was  it  necessary  to  introduce?  *  What  is  a  Single  Entry  Ledger  designed  to  contain? 
*By  its  use,  what  is  the  proprietor  enabled  to  know?  ^  When  a  purchase  is  partly  paid  for 
at  the  time  it  is  made,  what  entries  are  usually  made?  *  What  other  form  of  entry  might  be 
made?  "Would  there  be  any  difference  in  the  result  by  either  plan?  '"Why  is  the  first 
form  preferred  ?  Page  22. — "  How  is  the  posting  done?  "'"  Tell  how  you  would  post  the 
following  journal  entry:  June  1,  Student,  Cr.  {Investment),  $3500,  Page  23. — *^"Tell  how 
you  would  post  the  following  journal  entry:  June  U,  Wm.  Simpson,  Dr.  {Mdse.),  $550. 
Page  25. — "When  should  an  account  in  the  Ledger  be  ruled  up  and  footed  ?  "Explain 
the  process  of  niling  and  footing  an  account  in  which  there  are  several  entries  ?  "'""^  How 
is  an  account  closed  in  which  there  is  but  one  entry  on  each  side  ?  Page  27. — '*How  may 
the  Present  Worth  of  a  business  be  ascertained  ?  "  How  may  the  Net  Gain  or  Net  Loss  be 
found  ?  '"  Of  what  do  the  Resources  of  a  business  consist?  "  Of  what  do  the  Liabilities 
consist?  "What  is  an  Inventory?  '"How  is  property  on  hand  usually  estimated  at  the 
time  of  taking  inventory?  Page  28. — "How  can  the  proprietor's  account  be  made  to  show 
his  present  interest  in  the  business  ?  "  How  frequently  are  statements  of  resources  and 
habilities  made  in  business? 


Seyeistth  Exeeoise. 

You  are  now  prepared  to  begin  the  work  of  July,  which  will  be  a  continuation  of  that  of 
June.  All  of  the  entries  in  the  Journal  will  be  posted  to  the  accounts  in  the  Ledger  already 
opened,  and  should  it  be  necessary,  new  accounts  will  be  opened.  The  cash  transactions  will 
be  recorded  in  the  Cash  Book  immediately  under  those  of  June. 

Since  the  following  exercise  is  of  the  same  general  character  as  the  preceding  one,  it  is 
believed  you  will  be  able  to  make  the  entries  in  the  Journal  and  Cash  Book  without  diffi- 
culty. Should  doubt  arise  as  to  the  proper  form  of  an  entry,  it  is  suggested  that  you  consult 
the  preceding  exercise,  where  you  will  find  entries  involving  exactly  the  same  principles  aa 
govern  those  in  this  exercise. 


30  SINGLE  ENTRY  BOOK-KEEPING. 

SERIES    OF    TRANSACTIONS. 
July,    190-, 
1.     Paid  one  month's  rent  in  advance,  in  cash,  $50.     (C.  B.) 


It 


Sold  John  Hammond  50  bbls.  Flour,  at  $6.25,  $312.50)  75  bush.  Corn,  at  "^S^,  156.25; 
50  bush.  Oats,  at  50^,  $25.  Received,  cash,  $200;  balance  to  be  paid  July  15th. 
{J.  and  a  B.) 

2.  Sold,  for  cash,  100  bbls.  Flour,  at  $6,  $600.     {C.  B.) 

3.  Sold  Mjron  G.  Eeed,  100  bush.  Corn,  at  70^,  $70;  50  bush.  Oats,  at  50^,  $25;  75  bbls. 
'   Flour,  at  $6.25,  $468.75.     Eeceived  $300,  cash;  balance  to  be  paid  in  15  days.     (/. 

and  a  B.) 

"  Sold  Geo.  W.  Young,  on  account  at  30  days,  100  bbls.  Flour,  at  $6.25,  $625.     (J.) 

5.  Received  of  John  Hammond,  $100.50,  cash,  in  full  of  bill  of  June  22.     {J.,  C.  B.) 

7.  Received,  cash,  of  Chas.  B.  Corning,  for  balance  of  bill  of  June  27,  $213.     (J.,  C.  B.) 

8.  Sold,  for  cash,  50  bbls.  Flour,  at  $6.25,  $312.50;  100  bush.  Corn,  at  75^,  $75. 

9.  Paid  Wm.  Simpson,  cash,  for  balance  of  acct.  of  June  9,  $810.     (J".,  C.  B.     Rule  lip 

Simpson^ s  account  as  directed  in  note  under  June  18,  page  25. ) 

10.  Bought  of  Robert  Wentworth,  on  account  at  10  days,  200  bush.  Oats,  at  40^, '$80;  150 

bush.  Corn,  at  60  cents,  $90.     (/.) 

11.  Sold  Geo.  W.  Young,  50  bbls.  Flou]-,  at  $6,  $300.     Received  $200,  cash ;  balance  to  be 

paid  in  15  days. 

12.  Bought  of  Wm.  Simpson,  500  bbls.  Flour,  at  $5.50,  $2750.     Paid  one-half,  $1375, 

in  cash.     {J.,  C.  B.) 

13.  Paid,  cash,  for  repairing  wagon,  $3. 75. 

15.  Received,  cash,  of  John  Hammond,  for  balance  of  purchase  of  the  1st  inst.,  $193.75, 

16.  Paid  Robert  Wentworth,  balance  due  him  on  purchase  of  June  15th.,  $180. 

17.  Sold  Geo.  W.  Young,  on  account  at  30  days,  100  bush.  Corn,  at  70^,  $70;  100  bush. 

Oats,  at  50^,  $50. 

18.  Received,  cash,  of  Myron  G.  Reed,  for  balance  of  account,  $263.75.     {Eule  up  Eeid's 

account  as  instructed  iw  note  under  June  18,  page  25. ) 

20.  Sold  Mann  &  Willard,  on  account  at  30  days,  150  bbls.  Flour,  at  $6.25,  $937.50. 

21.  Received  of  Chas.  B.  Corning,  $150  in  cash,  in  full  payment  of  purchase  of  June  21st. 

{Rule  up  Coming's  account.) 

22.  Bought  of  Robert  Wentworth,  on  account  at  30  days,  200  bush.  Oats,  at  40^,  $80;  300 

bush.  Corn,  at  60^2^,  $180. 

23.  Sold  Chas.  B.  Corning,  50  bbls.  Flour,  at  $6.25,  $312.50;  100  bush.  Oats,  at  48^,  $48; 

100  bush.  Corn  at  75^,  $75.     Received,  $200,  cash ;  balance  to  be  paid  in  30  days. 

24.  Sold,  for  cash,  50  bbls.  Flour,  at  $6,  $300. 

26.  Received,  cash,  of  Geo.  W.  Young,  for  balance  of  bill  of  llth  inst.,  $100. 

27.  Sold  Mann  &  Willard,  on  account  at  30  days,  100  bbls.  Flour,  at  $6.25,  $625. 

28.  Sold  Geo.  W.  Young,  50  bbls.  Flour,  at  $6.50,  $325.     Received  $150,  cash;  balance  to 

be  paid  in  10  days. 

29.  Bought  Iron  Safe  for  use  of  the  business,  for  which  I  paid,  cash,  $100. 

30.  Sold,  for  cash,  100  bush.  Corn,  at  65^,  $65;  100  bush.  Oats,  at  45 j#,  $45. 

31.  Paid  clerk's  salary  for  July,  $60,  in  cash. 


SINGLE  ENTRY  BOOK-KEEPING.  81 

POSTING  THE  ENTRIES  FOR  JULY. 

You  will  now  balance  and  rule  up  your  Cash  Book  as  heretofore  instructed.  Your 
balance  of  cash  should  be,  $1474.65.  Next  post  the  entries  contained  in  your  Journal  to 
the  proper  accounts  in  your  Ledger,  as  explained  in  ''Instructions  for  Posting"  on  page  22, 
and  as  illustrated  on  page  26.  In  business  it  is  customary  and  advisable  to  post  every  day, 
so  that  the  Ledger  shall  show  at  all  times  the  true  condition  of  the  personal  accounts. 

DIRECTIONS  EOR  POSTING  XHE  ENTRIES  POR  JULY. 

In  the  entry  of  July  1,  John  Hammond  is  debited  $393.75.  You  will  therefore  turn  tc 
John  Hammond's  account  in  the  Ledger,  and  place  on  the  left-hand,  or  debit  side,  the  date, 
July  1,  the  explanation,  Mdse.,  the  page  of  the  Journal,  5,  and  in  the  amount  column,  the 
amount,  $393.75,  remembering  to  place  the  Ledger  page,  on  which  Hammond's  account 
appears,  in  the  check  column  in  the  Journal.  Then,  immediately  credit  John  Hammond  in 
the  Ledger  for  the  amount  for  which  he  is  credited  in  the  Journal.  Remember  to  date  and 
check  the  entry.  You  will  proceed  posting  in  like  manner  all  of  the  entries  for  July.  Give 
all  new  accounts  one-half  page  space.     Whenever  an  account  balances  rule  it  up. 

After  completing  the  posting  you  will  next  make  a  statement  of  your  property  and  debts. 
Your  merchandise  on  hand  will  correspond  with  the  following 

Inventoet  for  July. 

165  bbls.  Flour,  at  $5.50,.. 907.50 

200  bush.  Oats,  at  40^, 80.00 

275      "      Corn,  at  60{ZS,.:.. .'. 165.00 

1152.50 
Your  statement  of  resources  and  liabilities  should  correspond  with  the  following 

Resources. 

Inventory,  Mdse., - 1152.50 

Horse  and  Wagon, 145. 00 

Iron  Safe, 100.00 

Harness,  valued  at 15.00 

1412.50 
Personal  Accounts,  receivable: 

John  Hammond, 121.25 

Chas.  B.  Corning, 235.50 

Geo.  W.  Young, 920.00 

Mann  &  Willard, 1562.50 

2839.25 

Cash  on  hand  from  Cash  Book, 1474. 65 

Total  Resources, 5726.40 

Personal  Accounts,  payable:  Liabilities. 

Wm.  Simpson, 1375.00 

Robert  Wen tworth, 430.00 

Total  Liabilities, . 1805.00 

Difference  between  the  Resources  and  Liabilities,  or  Present  Worth, 3921.40 

Interest  in  the  business  at  the  beginning  of  the  month,  as  shown  by  Ledger  account,  3354. 65 

Net  gain  for  month  of  July, 566.75 


32 


SINGLE  ENTRY  BOOK-KEEPING. 


After  making  the  statement  as  directed  above,  you  will  next  proceed  to  cause  your  account 
in  the  Ledger  to  show  your  present  worth,  as  explained  on  page  28,  and  as  illustrated  below. 
Remember  that  all  rulings,  and  such  entries  in  the  Ledger  as  are  to  be  transferred,  should  be 
in  red  ink.  After  closing  your  account  and  bringing  down  the  Present  Worth,  it  should 
correspond  to  the  illustration  given  below. 


^J2l^l^^€:^£^^^ 


1 — TJaZZ 


J^V^&^ 


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^Ci'>i^'■*^uA-■^/^l 


C^^i^ci^^e-;^  .-XV-^Z^^ 


Your  Ledger  is  now  in  condition  for  beginning  the  work  embraced  in  the  next  exercise; 
but  before  entering  upon  the  work,  review  carefully  the  questions  given  on  page  29. 


Eighth  Exercise. 

You  will  now  make  the  proper  entries  in  your  Journal  and  Cash  Book  for  the  following 


SEMES  OF  TRANSACTIONS. 

August,   190-, 

1.  Sold  Chas.  B.  Corning,  100  bbls.  Flour,  at  $5.75;  125  bush.  Oats,  at505«;  75  bush. 

Corn,  at  70^.     Received  $400,  in  cash;   balance  to  be  paid  in  30  days. 

2.  Received,  cash,  of  Geo.  W.  Young,  in  full  of  bill  of  July  3. 

3.  I  have  this  day  drawn  $350,  in  cash,  from  the  business  for  my  private  use. 
This  entry  should  be,  Student,  Dr.,  Cash  for  private  use,  350.00. 

4.  Bought  of  Robert  Wentworth,  400  bush.  Oats,  at  40^ ;  300  bush.  Com,  at  60j*.     Paid 

one-half  in  cash;  balance  due  in  30  days. 

6.  Sold,  for  cash,  100  bbls.  Flour,  at  $5,75. 

7.  Received,  cash,  of  Geo.  W.  Young,  for  balance  of  bill  of  July  28. 

8.  Obtained  a  policy  of  Insurance  of  $2000,  on  the  contents  of  the  store,  for  one  year,  for 

which  I  paid  a  premium  of  1  per  cent.,  $20,  in  cash. 

9.  Bought  an  Office  Desk,  Letter  File,  and  Copying  Press,  for  office  use,  for  which  I  paid, 

$125,  in  cash. 
10.     Paid  rent  of  store  for  August,  in  cash.  $50. 


SINGLE  ENTRY  BOOK-KEEPING.  88 

11.     Paid  Wm.  Simpson,  cash,  for  balance  of  bill  of  July  12th. 

You  will  remember  that  when  an  account  in  your  Ledger  is  made  to  balance  during  the  course  of  the 
business,  you  are  to  rule  it  up.     {See  note  under  June  18,  page  25.) 

14.  Sold  John  Hammond  50  bbls.  Flour,  at  $6.10;  100  bush.  Oats,  at  46^;  125  bush.  Corn, 

at  70^.     Received  $200,  cash;  balance  to  be  paid  in  20  days. 

15.  Bought  of  Wm.  Simpson,  on  account  at  30  days,  300  bbls.  Flour,  at  $5.75. 

16.  Received,  cash,  of  Geo.  W.  Young,  for  amount  of  his  purchase  of  July  17. 

18.  Bought  of  Robert  Went  worth,  on  account  at  30  days,  200  bush.  Oats,  at  42  j* ;  150 

bush.  Com,  at  65^. 

19.  Received  $1000,  cash,  of  Mann  &  Willard,  to  apply  on  their  account. 

20.  Sold,  for  cash,  150  bbls.  Flour,  at  $6. 

31.     Bought  of  Wm.  Simpson,  300  bbls.  Flour,  at  $5.60.     Paid  $1000,  cash;  balance  due 
in  30  days. 

22.  Received,  cash,  of  Chas.  B.  Coming,  for  balance  of  his  purchase  of  July  23. 

23.  Paid  Robert  Wentworth,  cash,  in  full  of  purchase  of  July  22. 
25.     Sent  1  bbl.  Flour  to  my  house,  for  private  use. 

This  should  be  charged  to  you  in  the  Journal  at  cost  price,  $5.50.     The  entry  will  be  Studentt  Dr., 

5.50. 


26.     Received,  cash,  of  Mann  &  Willard,  for  balance  of  their  account. 
Rule  up  this  account  as  heretofore  instructed. 

28.  Sold,  for  cash,  50  bush.  Oats,  at  45j2J;  75  bush.  Com,  at  70^. 

29.  Paid,  cash,  for  shoeing  horse,  $2.50. 

30.  The  Store  and  contents  were  last  night  destroyed  by  fire.     The  books  and  cash  in  the 

safe  were  uninjured.     The  Sun  Insurance  Co.  owes  you  $2000,  the  amount  of  the 
policy  of  insurance  taken  on  the  8th  inst. 

You  will  now  balance  your  Cash  Book,  post  the  Journal  entries  to  the  Ledger,  and  make 
out  a  Statement  of  Resources  and  Liabilities.  Your  balance  of  cash  should  be  $2990.15. 
The  Inventory  will  consist  of  the  Horse  and  Wagon,  valued  at  cost,  and  the  Safe,  damaged, 
valued  at  $25.  John  Hammond  owes  you  $359.75,  Chas.  B.  Corning,  $290,  and  the  Sun 
Ins.  Co.,  $2000.  You  owe  Wm.  Simpson  $2405,  and  Robert  Wentworth  $521.50.  Your 
Net  Loss  for  the  month  is,  $682.50,  and  your  Present  Worth  is,  $2883.40. 

After  completing  the  Statement  of  Resources  and  Liabilities,  you  will  next  cause  your 
account  in  the  Ledger  to  show  your  Present  Worth,  by  entering  on  the  proper  side  of  the 
account  the  amount  of  your  Net  Loss.  It  will  be  apparent  that  since  a  net  gain  increases 
your  interest  in  the  business,  and  is  placed  on  the  credit  side  of  your  account,  a  net  loss  will 
diminish  your  interest,  and  must  be  placed  on  the  debit  side  of  that  account.  You  will, 
therefore,  enter  on  the  delit  side  of  your  account,  in  the  date  column,  Aug.  31,  in  the 
explanation  column.  Net  Loss,  in  the  check  column,  1,  and  in  the  amount  column,  682.50. 
Next  enter  your  Present  Worth  on  the  smaller  side  of  your  account,  in  red  inh,  as  heretofore 
instructed.  Then  rule  and  foot  the  account,  and  bring  the  Present  Worth  below  the  rulings, 
on  the  credit  side.     (See  illustration\on  next  page.) 

It  will  be  observed  that  this  business  is  discontinued  at  this  point.     The  business  of  the  next  month 
would  naturally  commence  with  the  present  assets  and  liabilities,  but  as  other  principles  are  to  be  illustrated, 
necessitating  other  resources  and  liabilities,  it  is  thought  best  that  everything  pertaining  to  the  foregoing 
business  be  dropped  here,  and  that  the  new  business  start  out  under  entirely  new  conditions. 
3 


34 


SINGLE  ENTRY  BOOK-KEEPING. 


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After  completing  the  ivork  of  closing  your  account,  as  instructed  on  the  precedi?ig  page, 
hand  your  hooks  to  the  teacher  for  inspection,  and  be  prepared  to  answer  questions  upon 
the  work  passed  over. 


SINGLE  ENTRY  BOOK-KEEPING. 


35 


Ni:^rTH   ExEECiSE. 

Since  the  series  of  transactions  which  constitutes  this  exercise  embraces  promissory 
notes,  it  will  be  necessary  for  the  pupil  to  become  familiar  with  the  form,  elements  and 
sphere  of  such  notes,  and  also  with  the  manner  of  entering  them  in  the  Bill  Book,  before 
proceeding  further. 

*  Bills  Eeceivable,  as  defined  on  page  6,  embraces  all  of  other  people's  negotiable  Avritten 
promises  to  pay,  in  our  possession, 

"  Bills  Payable  embraces  all  of  our  negotiable  Avritten  promises  to  pay,  in  the  possession 
pi  others. 

'  By  a  negotiable  written  promise  to  pay  is  rrjeant  a  written  agreement  to  pay  a  stipulated 
sum  of  money,  at  a  stated  time,  to  some  person  named  in  the  paper,  or  to  his  order,  or  to 
bearer,  and  usually  a  place  where  it  shall  be  paid  when  it  falls  due  is  also  indicated. 

Form  of  Promissory  Note. 


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*  The  import  of  the  foregoing  paper  is  that  the  student  has  promised  in  writing  to  pay 
Wm.  Graham,  or  to  whomever  he  may  see  fit  to  transfer  the  note,  seventy  dollars,  and  two 
months'  interest  on  that  sum,  two  months  after  June  6,  190-,  and  to  make  the  payment 
at  the  First  National  Bank. 


36  SINGLE  ENTRY  BOOK-KEEPING. 

'Had  the  note  been  made  payable  to  Wm.  Graham,  or  hearer,  instead  of  to  Wm.  Graham 
or  order,  Graham  could  make  a  complete  transfer  of  it  to  anybody  by  simply  delivering  the 
paper,  but,  as  it  was  made  payable  to  him  or  his  order,  "  it  will  be  necessary  for  him  to 
mdorse  it.  '  This  is  done  by  Graham  writing  his  name  across  the  back  of  the  paper,  as 
shown  in  the  second  illustration  on  the  preceding  page,  '  which  makes  it  payable  to  whoever 
has  possession  of  it  when  it  becomes  due.  "  Should  the  person  who  receives  the  note  from 
Graham  ( whom  we  will  suppose  to  be  R.  L.  Mason ),  bearing  his  indorsement,  wish  it  made 
so  that  nobody  but  he  could  collect  it,  without  his  indorsement,  he  may  have  Graham  indorse 
it  thus : 


Or,  "should  Mason  receive  it  with  simply  Wm.  Graham  written  on  the  back,  he  may  write 
over  Graham's  signature,  ^'Pay  to  the  order  (/  R.  L.  Mason,''  which  would  have  the  same 
effect.  "Thus  he  will  have  caused  the  note  to  be  made  payable  to  him  or  his  order,  as 
completely  as  Student  originally  made  it  payable  to  "Wm.  Graham.  In  some  of  the  States 
of  the  Union  negotiable  paper  is  allowed  to  run  three  days  beyond  the  expiration  of  the 
time  it  was  made  to  run  by  its  terms.  These  additional  days  are  called  "days  of  grace.'' 
Formerly  days  of  grace  were  allowed  in  all  of  the  states,  but  have  since  been  abolished  in 
many  of  them  by  acts  of  their  legislatures.     Days  of  grace  are  not  considered  in  this  book. 

The  Bill  Book. 

"This  is  a  book  designed  to  contain  all  of  the  facts  regarding  the  notes  received  or  issued 
by  us.  "It  is  usually  made  reversible,  with  Bills  Receivable  on  one  side,  and  Bills  Payable 
on  the  other. 

"The  facts  which  this  book  should  contain  are,  the  number  of  the  note;  the  date  when 
given  or  received;  the  indorser,  if  any;  the  maker,  who  is  the  person  who  has  it  to  pay; 
the  person  in  whose  favor  it  is  made;  for  what  the  note  was  given  or  received;  the  place 
where  the  paper  is  payable;  the  date  when  it  will  fall  dne;  the  amount  of  the  note  in 
figures,  with  "Int."  written  in  small  letters  over  the  figures,  if  the  note  is  made  to  draw 
interest,  and  the  date  of  payment;  and  at  the  extreme  right  there  is  a  column  for  indicating 
how  and  when  the  note  was  paid  or  disposed  of. 

The  form  of  Bill  Book  given  on  pages  38-39  will  afford  an  idea  of  the  book  and  its  use. 


SINGLE  ENTRY  BOOK- KEEPING 


You  will  write  up  on  cap  paper  the  notes  required  by  the  following  data,  and  enter  them 
in  the  Bill  Book. 

No.  1.  Your  note,  given  to  apply  on  account,  drawn  at  two  months  after  June  6, 190-, 
favor  of  Wm.  Graham,  or  order,  for  seventy  dollars,  payable  at  First  National  Bank,  with 
interest.     {Bill  Payable.) 

No.  1.  P.  W.  Monroe's  note,  favor  of  you  or  your  order,  received  for  cash  loaned,  payable 
at  your  office  three  months  after  July  16,  amount  one  hundred  and  fifty-five  dollars  and 
seventy-five  cents.     {Bill  Receivable.) 

To  aid  you  in  properly  arranging  and  capitalizing  such  a  note  as  the  above,  the  following 
illustration  is  given  : 


aty 


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The  note  illustrated  above  need  not  be  entered  in  the  Bill  Book. 

■*  It  should  be  borne  in  mind  that  when  a  note  is  not  intended  to  draw  interest  it  is  not  necessary  that  it 
should  be  so  stated.     When  the  paper  is  to  draw  interest,  write  simply,  "  with  interest,"  as  shown  above. 

No,  2.  Your  note,  given  for  merchandise,  at  one  month  from  July  14,  payable  at  National 
Exchange  Bank,  for  one  hundred  dollars,  with  interest,  favor  of  J.  D.  Wilson.  {Bill  Pay- 
able. ) 

No.  2.  J.  G.  Wagner  &  Go's  note,  for  $696.84,  received  for  merchandise,  favor  of  you 
or  bearer,  indorsed  by  W.  J.  Brown,  payable  at  Second  National  Bank,  dated  Lockport, 
N.  Y.,  July  20,  at  two  months,  with  interest.     {Bill  Receivable.) 

It  is  presumed  that  you  can  now  determine  which  of  the  following  notes  are  Bills  Receivable  and  which 
are  Bills  Payable,  and  also  that  you  will  be  able  to  properly  number  them  and  enter  them  in  the  Bill  Book. 

Your  note,  for  1346.84,  at  thirty  days  from  July  22,  given  for  merchandise,  payable  at 
Merchants  Bank,  with  interest,  favor  of  Franklin  Elwood. 

John  H.  Turner's  note,  for  $123.12,  your  favor,  received  for  cash  loaned,  dated  at 
Worcester,  Mass.,  July  18,  190-,  at  two  years  from  date,  with  interest,  payable  at  Exchange 
Bank,  Boston,  Mass.,  indorsed  by  M.  W.  Payne. 

A  note,  in  your  favor,  for  $100,  dated  New  York,  Jan.  16,.190-,  at  one  year  and  six  months 
after  date,  with  interest,  payable  at  Park  Bank,  made  by  Walters  &  Brown,  Goshen,  N.  Y., 
and  indorsed  by  Willis  &  Eeed. 

A  note,  favor  John  H.  True,  dated  July  17,  signed  by  you,  given  for  merchandise,  payable 
three  months  after  date,  for  $312.60,  with  interest,  payable  at  the  German-American  Bank. 

Note. — The  foregoing  is  designed  simply  to  illustrate  the  recording  of  notes  in  the  Bill  Book ;  since  it 
has  no  connection  with  the  work  which  is  to  follow,  you  may  draw  a  red  line  in  the  Bill  Book  below  the  last 
entry,  entirely  across  both  pages  on  each  side  of  the  book.  /  , 


38 


SINGLE  ENTRY  BOOK-KEEPING. 

BILLS 


No. 

When 
Given. 

DRAWER  AND 
ENDORSER. 

DRAWEE  OR 
MAKER. 

IN  WHOSE 
FAVOR. 

FOR   WHAT 
GIVEN. 

WHERE 
PAYABLE., 

1 
2 

190- 

June 
July 

6 
14 

Student 

Wm  Graham 
J.  D.  Wilson 

On  account 

Mdse. 

First  Nat.  Bk. 
Nat.  Ex.  Bk. 

BILLS 


No. 

When 
Rec'd. 

DRAWER   AND 
ENDORSER, 

DRAWEE  OR 
MAKER. 

IN   WHOSE 
FAVOR. 

FOR   WHAT 
RECEIVED. 

WHERE 
PAYABLE. 

1 
.2 

190- 

July 
July 

16 
20 

W.  J.  Brown 

P.  W.  Monroe 

J.  G.  Wagner 
&Co. 

Myself 

Money  loaned 
Mdse. 

My  office 
Sec.  Nat.  Bk. 

Iinttoioes  or  Bills. 

An  Invoice,  as  used  in  this  connection,  is  a  bill  of  items  of  merchandise  sold.  {See 
illustration  on  opposite  page.)  It  should  contain  the  name  of  the  place  where  the  sale  was 
made  ;  the  date  of  the  sale  ;  the  name  of  the  person,  firm  or  company  making  the  sale  ;  the 
name  of  the  person,  firm  or  company  to  whoin  the  sale  was  made  ;  the  terms  of  payment ;  a 
description  of  every  item  of  merchandise,  with  the  price  of  each  item  ;  the  amount  of  each 
item  should  be  extended  into  the  left-hand  money  column,  and  the  aggregate  of  all  extended 
into  the  right-hand  money  column. 

If  the  goods  are  paid  for  at  the  time  the  sale  is  made  the  invoice  should  be  "  receipted  " 
by  entering  below  the  items,  ''Received  payment,"  followed  by  the  signature  of  the  seller. 
For  instance,  had  Student  paid  for  the  goods  embraced  in  the  invoice  illustrated  on  page  39, 
somebody  connected  with  the  American  Graphite  Co.,  who  has  authority  to  sign  for  the  com- 
pany, usually  the  Secretary,  or  some  other  officer,  should  have  written  at  the  bottom  of  the 
invoice.  Received  payment, 

American  Graphite  Co. 
By  J.  D.  S. ,  Secretary. 

In  case  time  is  given  on  a  purchase,  as  in  that  of  Student  from  the  American  Graphite 
Co.,  it  is  usual  to  return  the  invoice  to  be  receipted  when  payment  is  made,  in  which  case 
the  receipt  should  be  dated,  as  :  Received  payment  Sept.  10,  190- 

American  Graphite  Co. 

By  J.  D.  S.,  Secretary. 


SINGLE  ENTRY  BOOK-KEEPING 

PAYABLE. 


39 


DATE 

TIME. 

WHEN  DUE. 

Amount 

When  and  How 

rEAR           MONTH 

^ 

4 

1 

1 

a 

s 

■-s 

3 

ti 
% 

S 
S 

o 

o 

1 

Redeemed 

190- 

June 
July 

6 
14 

2  mos 
1  mo. 

190- 

i 

6 
14 

Int. 

70 

Int. 

100 

190- 

Aug 

6 

Paid  by 
bank. 

RECEIVABLE. 


DATE. 

TIME 

WHEN  DUE. 

When  and  How 

TKAB          MONTH. 

>< 

i 
>-> 

i 

X 

s 

3 

>> 

3 

3 

1 

O 

1 

Disposed  Of. 

190- 

July 

16 
20 

3  mos 
3  mos 

20 

16 

155 

Int. 

696 

75 
84 

190- 
Oct. 

16 

Paid  in 
cash. 

FORM   OF  INVOICE. 


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SINGLE  ENTRY  BOOK-KEEPING. 


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SINGLE  ENTRY  BOOK- KEEPING.  41 

Te:s^th  Exercise. 

The  Journal,  Cash  Book  and  Bill  Book  are  required  to  make  a  proper  record. 
Draw  up  all  notes  on  cap  paper,  and  make  all  invoices. 

SERLES  OF  TRANSACTIONS. 

September  1,    190-, 

Commenced  the  wholesale  Stationery  business  this  day  with  the  following  resources  and 

liabilities  : 

Resources. —  Cash  $3500 ;  an  Iron  Safe  valued  at  $60  ;  oflBce  Furniture  worth  $175;  Horse 
and  Wagon,  $145  ;  a  note  for  $1500  made  by  John  W.  Martin,  favor  of  S.  C.  Johnson, 
and  indorsed  by  him  to  me  or  order,  with  interest  at  6  per  cent.,  dated  Cleveland, 
O.,  January  15th,  last,  payable  at  First  National  Bank,  eight  months  after  date; 
interest  due  on  Martin's  note  to  date,  $56.50. 

It  will  be  apparent  that  since  Martin's  note  draws  interest,  and  it  has  already  run  since  Jan.  15,  it  is 
worth  more  than  its  face.  The  interest  from  its  date  to  the  present  time  should  therefore  be  entered  as  a 
resource.     (See  Journal,  page  40.)    Enter  the  note  in  the  Bill  Book,  and  the  cash  in  the  Cash  Book. 

Liabilities. —  My  note  for  $395.00,  favor  D.  Rawson,  at  sixty  days  from  July  26th,  last, 
payable  at  Farmers  and  Mechanics  Bank,  with  interest  at  5  per  cent. ;  an  account  of 
$354.20  favor  Mason  &  Wells,  due  October  1st,  next ;  interest  on  note  favor  D.  Raw- 
son  to  date,  $1.52. 

2.  Bought  of  the  American  Graphite  Co.,  Hoboken,  N.  J.,  25  gross  Excelsior  Lead  Pen- 

cils, No.  2,  @  $2.25;  15  gross  Commercial  Pencils,  No.  3,  @  $2.10;  20  gross  Lum- 
bermen's Pencils,  @  $1.60;  10  gross  Assorted  Drawing  Pencils,  @  $3.55;  5  gross 
Assorted  Colored  Pencils,  @  $2.75;  15  gross  Dynamic  Pencils,  @.$4.25.  Terms, 
30  days,  or  2  per  cent,  off  if  paid  within  10  days.     Invoice  dated  1st  inst. 

You  will  use  for  explanation  in  the  Journal  Invoice  of  Ist  inst.  Since  the  invoices  of  purchases  are 
filed  for  future  reference,  it  is  unnecessary  to  write  in  the  Journal  all  of  the  items  and  particulars  of  such 
transactions  as  the  foregoing.     You  will  make  the  invoice  also.    ( See  illustration  on  page  39). 

3.  Bought  of  the  New  England  Paper  Co.,  Concord,  N.  H.,  3  cases  Foolscap  Paper,  40 

reams  in  each  case,  @  $3. 10.  The  terms  of  purchase  are,  2  months,  or  3  per  cent. 
10  das.;  that  is,  payment  may  be  deferred  two  months,  but  if  the  amount  be  paid 
within  10  days  3  per  cent,  will  be  deducted  from  the  cost.  (  These  terms  are  indi- 
cated in  the  invoice.)     Invoice  dated  1st  inst. 

In  entering  this  in  the  Journal  use  for  explanation  *'  Invoice  of  Ist  inst." 

4.  Bought  of  the  Waltham  Manufacturing  Co.,  Waltham,  Mass.,  at  30  days,  1000  gross 

White  Crayon,  @  14^.     Invoice  dated  Sept.  1. 

5.  Sold  Davidson  &  Smith,  Madison,  10  reams  Cap  Paper,  @  $3.35 ;  5  gross  Excelsior 

Pencils,  @  $2.60;  3  gross  Dynamic  Pencils,  @  $5 ;  50  gross  White  Crayon,  @  18^. 
Terms,  30  days  ;  2  per  cent,  off  if  paid  within  15  days. 

6.  Sold  Johnson  &  Brown,  Evansville,  on  account  at  10  days,  10  gross  Commercial  Pen- 

cils, @  $2.55  ;  5  gross  Lumbermen's  Pencils,  @  $1.95  ;  15  reams  Foolscap,  @  |3.65. 
8.^  Bought  of  Wyant  &  Harvey,  Philadelphia,  Pa.,  100  gross  Commercial  Student's  Pens, 
@  70^ ;  50  doz.  Commercial  Student's  Rulers,  brass  edge,  @  45^ ;  5  C  Figuring  Pads, 
@  $4.  Terms,  60  days,  or  3  per  cent,  off  if  paid  in  10  days.  Invoice  dated  Sept.  3. 
10.  Paid  the  American  Graphite  Co.,  cash,  for  the  amount  of  their  invoice 'of  the  1st 
inst.,  $232.75,  less  2  per  cent,  discount,  as  stated  in  terms  of  purchase.  Amount  of 
discount,  $4.66.     • 


4:2  SINGLE  ENTRY  BOOK-KEEPING. 

Enter  in  the  Cash  Book  the  amount  of  cash  actually  paid.  Debit  the  American  Graphite  Co.  for  the 
whole  amount  of  the  invoice  in  the  Journal,  as  this  entry,  when  posted,  should  balance  their  account.  Use 
for  explanation,  "invoice  of  1st  inst.,  less  8  per  cent,  discount." 

10.  Paid  New  England  Paper  Co.  cash  for  their  invoice  of  the  1st  inst.,  $372,  less  3  per 

cent,  cash  discount.     Discount,  $11.16.     {See  explanation  at  top  of  page.) 

11.  Bought  of  the  "Waltham  Manufacturing  Co.,  200  gross  Colored  Crayon,  @  380.     Terms, 

30  days;  2  per  cent.  10  days.     Invoice  dated  Sept.  5. 

13.  Paid  Wyant  &  Harvey  cash  for  the  amount  of  invoice  of  the  3rd  inst.,  less  3  per  cent. 

cash  discount.     Discount,  $3.38. 

14.  Sold  Davidson  &  Smith,  on  account  at  30  days,  5  gross  Commercial  Pencils,  @  $2. 75  ; 

7  gross  Assorted  Drawing  Pencils,  @  $4.40;  25  gross  Colored  Crayon,  @  480. 
16.     Paid  Waltham  Mfg.  Co.  amount  of  invoice  of  5th  inst.     Discount,  $1.52. 
**      Sold  Johnson  &  Brown,  on  account  at  10  days,  25  gr;  C.  S.  Pens,  @  850;  25  doz.  C.  S. 

Rulers,  brass  edge,  @  600;  40  reams  Foolscap,  @  $3.75. 
*'      John  W.  Martin  has  paid  his  note  of  $1500,  due  to-day,  with  interest  for  eight  months, 
$60.     (Mark  the  note  in  the  Bill  Book,  ''Paid  in  cash") 

16.  Bought  of  the  American  Graphite  Co.,  25  gr.  Excelsior  Pencils,  @  $2.25;  50  gr.  Univer- 

sity Pencils,  @  $2.75.     Terms,  30  days;  2  per  cent.  10  days.     Invoice  dated  Sept.  10. 

17.  Received  cash  of  Johnson  &  Brown,  for  amount  of  invoice  of  the  6th  inst. 

19.  Sold  Davidson  &  Smith,  on  account  at  30  days,  10  reams  Foolscap,  @  $3.35;   50  gr. 

White  Crayon,  @  190;  50  gr.  C.  S.  Pens,  @  840. 

20.  Sold  D.  F.  Phillips  &  Co.,  Warsaw,  on  account  at  10  days,  6  doz.  C.  S.  Rulers,  @  600; 

100  gr.  White  Crayon,  @  190;  5  gr.  Dynamic  Pencils,  @  $5.10. 

23.  Bought  of  New  England  Paper  Co.,  4  cases  Foolscap,  160  reams,  @  $3.05  per  ream; 

1  case  Commercial  Letter  Paper,  45  reams,  @  $1.80  per  ream.     Terms,  2  months; 
3  per  cent.  10  days. 

24.  Sold  Johnson  &  Brown,  on  account  at  10  days,  40  reams  Foolscap,  @  $3.40;  10  reams 

Commercial  Letter,  @  $2.20. 
**      Paid  my  note  and  interest,  due  to-day,  favor  of  D.  Rawson,  in  cash.     Interest  for  60 
days,  $2.47. 

25.  Sold  Davidson  &  Smith,  on  account  at  30  days,  20  reams  Foolscap,  @  $3.40;  5  reams 

Commercial  Letter,  @  $2.20;  25  gr.  C.  S.  Pens,  @  950. 

26.  Received  cash  of  Johnson  &  Brown,  in  full  of  invoice  of  the  15th  inst. 

28.  D.  F.  Phillips  &  Co.  have  settled  for  their  invoice  of  the  20th  inst.  by  giving  me  their 

note  at  30  days  from  this  date,  indorsed  by  J.  B.  Royce,  made  with  interest,  and 
payable  at  Second  National  Bank,  for  the  amount. 
"      Bought  of  Wyant  &  Harvey,  200  gross  C.  S.  Pens,  @  700.     Terms,  60  days;  3  per  cent. 
10  days. 

29.  Sold  D.  F.  Phillips  &  Co.,  at  10  days,  25  gr.  C.  S.  Pens,  @  950;  50  gr.  White  Crayon, 

@  200;  10  reams  Foolscap,  @  $3.60. 

30.  Paid  the  following  freight  bills  for  the  month:  $4.65,  $9.21,  $8.16,63.24,  $1.42  and  $7.20. 

Balance  and  rule  up  the  Cash  Book,  and  post  the  Journal  entries  for  the  month.  Your 
balance  of  cash  should  be,  $4232.37.   Give  each  account  one-half  page  space. 

You  will,  on  the  first  of  October  ( to-morrow ),  admit  Robert  C.  Harmon  as  an  equal 
partner  in  the  business,  he  to  furnish  a  cash  capital  equal  to  your  present  interest.  You 
will,  therefore,  make  out  a  Statement  of  Resources  and  Liabilities,  and  carry  your  net  gain, 
or  net  loss)  to  your  account,  bringing  down  ypur  present  worth  on  the  credit  side  of  your 
account,  as  illustrated  on  page  32. 


SINGLE  ENTRY  BOOK-KEEPING.  43 

INVENTORY    FOR    SEPTEMBER. 

Merchandise:  45  gr.  Excelsior  Pencils,  @  $3.25;  15  gr.  Lumbermen's  Pencils, 
@  11.60;  3  gr.  A.  Drawing  Pencils,  @  $3.55;  5  gr.  Colored  Pencils,  @  $2.75;  7  gr. 
DjTiamic  Pencils,  @  $4.25;  135  reams  Foolscap,  @  $3.05;  750  gr.  W.  Crayon,  @  14^;  175 
gr.  C.  S.  Pens,  @  70^;  19  doz.  C.  S.  Kulers,  brass  edge,  @  45^;  5  C  Fig.  Pads,  @  $4; 
175  gr.  Colored  Crayon,  @  38{^;  50  gr.  University  Pencils,  @  $2.75;  30  reams  Commercial 
Letter,  @  $1.80;  total,  1105.20. 

Iron  Safe,  $175;  Horseand  Wagon,  $145;  Office  Furniture,  $60;  total  inventory,  $1485.20. 

STATEMENT   OF  RESOURCES  AND  LIABILITIES. 

Eesources. 

Mdse., 1105.20 

Horse  and  Wagon, 145.00 

Office  Furniture, 60. 00 

Iron  Safe, 175.00 

1485.20 

Cash, 4232.37 

Personal  Accounts,  Receivable  : 

Davidson  &  Smith, 314.80 

Johnson  &  Brown, 158.00         , 

D.  T.  Phillips  &  Co.,-... 69.75 

542.55 

Bills  Receivable,  D.  F.  Phillips  &  Co. 's  note, ^ 48.10 

Total  Resources, 6308.22 

Liabilities. 
Personal  Accounts,  payable  : 

Waltham  Mfg.  Co., 140.00 

New  England  Paper  Co., 569.00 

Am.  Graphite  Co., 193.75 

Wyant  &  Harvey, , 140.00 

Mason  &  Wells, ■.     354.20 

Total  Liabilities, 1396.95 

Present  Worth, 4911.27 

Investment, ,..     4785. 78 

Net  Gain, $125.49 


44  SINGLE  ENTRY  BOOK-KEEPING. 

Elevee'th  Exercise. 

The  following  is  a  continuation  of  the  business  of  the  preceding  month,  necessitating  the 
use  of  the  same  books. 

SERIES  OE  TRANSACTIONS. 
October  1,  190-, 

I  have  this  day  admitted  Robert  C.  Harmon  to  partnership,  he  investing  the  real  estate 
now  occupied  by  the  business,  valued  at  $3000,  and  cash  sufficient  to  make  his  investment 
»  equal  my  present  worth.  The  name  of  the  firm  is  to  be  '^Student"  &  Harmon.  The  con- 
ditions of  the  partnership  are  :  each  partner  shall  devote  his  entire  time  and  energies  to  the 
business ;  the  gains  and  losses  shall  be  divided  equally;  the  partnership  contract  shall 
continue  three  years ;  neither  partner  shall  draw  from  the  business  more  than  fifty  dollars 
per  mouth,  and  neither  partner  shall  indorse  nor  become  surety  for  anybody  without  the 
consent  of  the  other  partner. 

1.  Robert  C.  Harmon  has  deeded  the  real  estate  occupied  by  the  business  to  ** Student"  & 

Harmon,  and  has  paid  in  cash,  $1911.27 

The  proper  Journal  entry  for  Harmon's  investment  is 

Robert  C.  Harmon  Cr.  4911.27 

Real  Estate  3000.00 

Cash  .  1911.27 

Remember  to  enter  the  cash  in  the  Cash  Book. 

"  '  Sold  Wilson  &  Farley,  on  account  at  10  days,  25  reams  Foolscap,  @  $3.40 ;  2  0  Figur- 
ing Pads,  @  $4.00;  25  gr.  C.  S.  Pens,  @  95 j5. 

2.  Paid  Mason  &  Wells  cash  in  full  of  their  account. 

Consult  your  Ledger  to  ascertain  the  amount  of  the  above  payment. 

"  Sold  R.  W.  Myers  &  Son,  on  their  note  at  30  days,  payable  at  First  National  Bank,  10 
gr.  Excelsior  Pencils,  @  $2.50;  3  gr.  Dynamic  Pencils,  @  S5.00;  10  reams  C.  Letter 
Paper,  @  $2.15  ;  15  gr.  C.  S.  Pens,  @  $1.00 ;  10  doz.  C.  S.  Rulers,  @  60^. 

3.  Paid  cash  for  invoice  of  New  England  Paper  Co.  of  Sept.  23,  $569,  less  the  usual  3j^ 

cash  discount,  $17.07. 

Debit  the  N.  E.  P.  Co.  in  the  Journal  for  the  whole  amount,  $569,  as  their  accoimt,  so  far  as  that  invoice 
is  concerned,  should  balance. 

4.  Johnson  »&  Brown  have  paid  for  invoice  of  Sept.  24. 

"      Paid  Waltham  Manufacturing  Co.  cash  for  invoice  of  Sept.  1. 

5.  Received  cash  of  Davidson  &  Smith  in  full  for  invoice  of  Sept.  5th. 

7.  Sold  Davidson  k  Smith,  on  account  at  30  days,  50  reams  Foolscap,  @  $3.40 ;  25  gr.  C. 

S.  Pens,  @  95^ ;  100  gr.  White  Crayon,  @  18^. 

**  Paid  Wyant  &  Harvey  cash  for  invoice  of  Sept.  28,  less  3^  cash  discount.  Discount, 
$4.20.     {See  note  under  Srd  inst.) 

8.  Sold  Johnson  &  Brown,  at  10  days,  100  gr.  White  Crayon,  @  18^ ;  25  gr.  C.  S.  Pens, 

@  95^-;   3  gr.  Lumbermen's  Pencils,  @  $2.00;  15  gr.  University  Pencils,  @  $3.25; 
15  reams  C.  Letter  Paper,  @  $2.25. 

9.  Bought  of  N.  E.  Paper  Co.,  on  usual  terms,  5  cases,  200  reams.  Foolscap,  @  $3.05 

per  ream;  2  cases,  00  reams,  Commercial  Letter,  @  $1.80  per  ream. 


SINGLE  ENTRY  BOOK-KEEPING.  45 

10.  Sold  K.  W.  Myers  &  Son,  on  their  note  at  30  days,  payable  at  First  National  Bank, 

2  eases,  80  reams.  Foolscap,  @  $3.50  per  ream. 

11.  Sold  D.  L.  Covil  for  cash,  10  gr.  Excelsior  Pencils,  @  $2.60  ;  15  gr.  University  Pencils, 

@  $3.25  ;  12  gr.  C.  S.  Pens,  @  ^b<p ;  5  gr.  colored  Crayon,  @  55^. 

"       Eeceiyed  cash  of  Wilson  &  Farley  for  invoice  of  the  1st  inst. 

12.  D.  F.  Phillips  &  Co.  have  become  financially  embarrassed  and  have  compromised  with 

their  creditors  at  seventy-five  cents  on  a  dollar.  "We  have  received  $52.31,  cash,  in 
settlement  of  our  claim  due  the  9th  inst. 

The  proper  entries  for  the  above  transaction  are  to  credit  D.  F.  Phillips  &  Co.  in  the  Journal  for  the 
amount  of  the  balance  of  their  account,  $69.75,  and  to  enter  on  the  left-hand  side  of  the  Cash  Book  the 
amount  of  cash  actually  received,  $52.31,  and,  for  explanation,  "compromised  at  75(^  on  a  dollar." 

Since  the  gains  and  losses  are  found  in  single  entry  book-keeping  by  ascertaining  the  difference  between 
the  resources  and  liabilities,  it  will  be  apparent  that  a  decrease  in  the  net  amount  of  resources  will  indicate  a 
loss,  and  since  in  this  case  the  resource  of  cash  received  is  $17.44  less  than  the  personal  resource  cancelled, 
which  just  represents  your  loss  on  this  account,  it  will  be  clear  that  the  entries  which  have  been  made  will 
cause  the  books  to  show  the  loss  which  has  been  sustained. 

14.  Received  cash  of  Davidson  &  Smith  in  full  of  invoice  of  Sept.  14,  due  to-day. 

15.  Sold  Pratt  Bros.  &  Co.,  Salem,  on  account  at  30  days,  1  case,  40  reams.  Foolscap,  @ 

$3.60;  1  case,  45  reams,  Commercial  Letter,  @  $2.25. 

16.  Paid  American  Graphite  Co.  cash,  for  invoice  of  Sept.  16th. 

17.  Sold  D.  F.  Phillips  &  Co.,  on  their  note  at  30  days,  indorsed  by  S.  H.  Woodbury,  and 

payable  at  First  National  Bank,  10  gr.  Ex.  Pencils,  @  $2.65;  3  gr.  Lum.  Pencils, 
@  $2.10 ;  10  gr.  University  Pencils,  @  $3.25 ;  10  reams  Foolscap,  @  $3.60 ;  20  gr. 
Col.  Crayon,  @  60^. 

18.  Received  cash  of  Johnson  &  Brown  in  full  of  their  bill  of  the  8th  inst. 

19.  Paid  N.  E.  Paper  Co.  cash  for  invoice  of  the  9th  inst.,  less  the  cash  discount,  3j^.     Dis* 

count,  $23.16.     [See  note  under  Srd  inst.) 

20.  Received  cash  of  Davidson  &  Smith  for  their  bill  of  Sept.  19th. 

22.     Sold  Davidson  &  Smith,  on  account  at  30  days,  25  gr.  C.  S.  Pens,  @  95$^ ;  25  gr.  Col. 
Crayon,  @  60^  ;  100  gr.  White  Crayon,  @  18^. 

24.  Sold  Johnson  &  Brown  on  account,  at  10  days,  1  case  Foolscap,  40  reams,  @  $3.60. 

25.  Received  cash  of  Davidson  &  Smith  for  bill  of  Sept.  25. 

26.  Bought  of  N.  E.  Paper  Co.,  on  usual  terms,  5  cases,  200  reams.  Foolscap,  @  $3.05. 

27.  Bought  of  American  Graphite  Co.,  on  usual  terms,  the  following  invoice  of  Pencils; 

50  gr.  Excelsior,  @  $2.25 ;  10  gr.  Assorted  Drawing,  @  $3.55  ;  10  gr.  Dynamic,  @ 

$4.25  ;  100  gr.  University,  @,  $2.75. 

28.  Paid  cash  for  shoeing  horse,  $1.50,  and  for  repairing  wagon,  $10.75. 

"      D.  F.  Phillips  &  Co.  have  paid  their  note  of  Sept.  28th,  due  to-day.     Amount  of  note, 
$48.10;  30  days'  interest,  24^. 

30.     " Student"  has  this  day  drawn  $40  for  private  use,  and  Robert  C.  Harmon,  $45.00. 

"       Paid  freight  bills  for  the  month,  $10.31,  $10.49,  and  $4.18. 

Balance  and  rule  up  your  Cash  Book,  and  post  the  Journal  entries  for  the  month.  The 
amount  of  cash  on  hand  should  be  $4806.24. 


46  SINGLE  ENTRY  BOOK-KEEPING. 

Inventory  for  October. 

Merchandise:  65  gross  Ex.  Pencils,  @  13.25;  9  gross  Lum.  Pencils,  @$1.60;  13  gross 
A'd  Pencils,  @  $3.55;  5  gross  Col.  Pencils,  @  $2.75;  14  gross  Dy.  Pencils,  @  $4.25;  110 
gross  Univ.  Pencils,  @  $2.75;  290  reams  Foolscap,  @  $3.05;  50  reams  C.  Letter,  @  $1.80; 
450  gross  W.  Crayon,  @  14^;  125  gross  C.  Crayon,  @  38^';  48  gross  C.  S.  Pens,  @  70^; 
9  doz.  G.  S.  Eulers,  @  45^;  3  C  Figuring  Pads,  @  $4.00;  total,  $1717.20. 

Horse  and  Wagon,  $145;  Iron  Safe,  $175;  Office  Furniture,  $60;  Real  Estate,  $3000. 

STATEMENT  OF  KESOURCES  AND  LIABILITIES. 

Eesources. 

Merchandise, 1717.20 

Horse  and  Wagon, __ 145.00 

Iron  Safe, 175.00 

Office  Furniture, 60. 00 

Real  Estate, 3000.00 

5097.20 
Cash, 4806.24 

Personal  Accounts,  receivable: 

Davidson  &  Smith, 268.50 

Johnson  &  Brown, 144. 00 

Pratt  Bros.  &  Co., 245.25 

657.75 
Bills  Receivable  : 

R.  W.  :^Iyers  &  Son's  note, 82.50  • 

R.  W.  Myer8&  Son's  note, 280.00 

D.  F.  Phillips  &  Co. 's  note, 113.30 

475.80 
Total  Resources, 11036.99 

Personal  Accounts,  payable:  Liabilities. 

N.  E.  Paper  Co., i 610.00 

A.  G.  Co., 465.50 

3075.50 

Present  Worth, 9961.49 

Investment: 

Studeut, 4911.27 

Drawn  by  Student, 40.00 

Student's  net  investment, 4871.27 

R.  C.  Harmon, 4911.27 

Drawn  by  Harmon, 45.00 

Harmon's  net  investment, 4866.27 

Net  investment  of  firm, 9737.54 

Net  Gain, 223.95 

Student's  i  Net  Gain, 111.98 

R.  C.  Harmon's  ^  Net  Gain, 111.97  223.95 

The  partners'  net  gain,  as  shown  by  the  foregoing  statement,  should  be  carried  to  the 
credit  of  their  accounts.  The  proprietors'  accounts  should  then  be  ruled  up,  the  present 
worth  of  each  placed  on  the  debit  side  of  his  account  and  brought  below  the  rulings  on  the 
credit  side,  under  date  of  November  1.     {See  illustration  on  page  S2.) 


SINGLE  ENTRY  BOOK-KEEPING.  47 

Twelfth  Exeeoise. 

Since  the  following  is  a  continuation  of  the  business  of  the  preceding  two  months  the 
same  books  will  be  required. 

SERIES  OE  TRANSACTIONS. 

November  1,  190-, 

Obtained  a  policy  of  insurance  covering  any  property  we  may  haye  in  the  store  to  tho 
amount  of  $1500,  for  which  we  paid  1^  per  cent,  premium,  $22.50,  in  cash. 

2.  Sold  Wilson  &  Farley,  on  account  at  10  days,  2  cases,  80  reams.  Foolscap,  @  $3.60  j 

25  reams  C.  Letter,  @  $2.25  ;  25  gr.  C.  S.  Pens,  @  90^. 

3.  Johnson  &  Brown  have  paid  cash  for  their  invoice  of  Oct.  24. 

4.  R.  \Y.  Myers  &  Son  have  paid  their  note  of  Oct.  2. 

6.     Paid  N.  E.  Paper  Co.,  cash  for  invoice  of  Oct.  26,  less  3^  cash  discount. 
6.     Paid  Am.  Graphite  Co.,  cash  for  invoice  of  Oct.  27,  less  2^  cash  discount. 

8.  Davidson  &  Smith  have  given  us  their  note,  at  20  days,  indorsed  by  J.  W.  Sloan,  and 

payable  at  Second  National  Bank,  in  payment  of  their  invoice  of  Oct.  7. 

9.  Sold  Johnson  &  Brown,  on  account  at  10  days,  3  cases,  120  reams,  Foolscap,  @  $3.55  ; 

200  gr.  White  Crayon,  @  19^  ;  50  gr.  University  Pencils,  @  $3.20. 
"      E.  W.  Myers  &  Son  have  paid  their  note  of  Oct.  10,  in  cash. 
10.     Bought  of  N.  E.  Paper  Co.,  on  usual  terms,  10  cases,  400  reams.  Foolscap,  @  $3.00; 

5  cases,  225  reams,  C.  Letter,  @  $1.75. 
12.     Wilson  &  Farley  have  paid  their  invoice  of  the  2nd  inst.,  in  cash. 

14.  Pratt  Bros.  &  Co.  have  settled  their  account  in  cash. 

15.  Sold  Wilson  &  Farley,  on  account  at  10  days,  3  cases,  120  reams,  Foolscap,  @  $3.45; 

15  gr.  Ex.  Pencils,  @  $2.60;  10  gr.  C.  S.  Pens,  @  90^;  10  gr.  C.  Crayon,  @  50^. 

16.  Bought  of  Wyant  &  Harvey,  300  gr.  C.  S.  Pens,  @  70^;  100  doz.  C.  S.  Rulers,  @  45^. 

Terms  60  days;  3  per  cent.  10  days.  , 

"      D.  F,  Phillips  &  Co.  have  paid  their  note  due  to-day,  $113.30. 

17.  Sold  Davidson  &  Smith,  on  account  at  30  days,  75  reams  Foolscap,  @  $3.50;  50  gr.  C. 

S.  Pens,  @  90^;  20  gr.  University  Pencils,  @  $3.10. 

19.  Johnson  &  Brown  have  settled  for  their  invoice  of  the  9th  inst.,  in  cash. 

20.  Paid  N.  E.  Paper  Co.  for  invoice  of  the  10th,  less  3^  cash  discount. 

21.  Davidson  &  Smith  have  paid  for  their  invoice  of  Oct.  22. 

22.  Sold  Belding  &  Wray,  Windsor,  on  their  note  at  30  days,  indorsed  by  James  L.  Hop- 

kins and  payable  at  Second  National  Bank,  2  cases,  80  reams.  Foolscap,  @  $3.40 ; 
50  reams  C.  Letter,  @  $2.10  ;  50  gr.  C.  S.  Pens,  @  90^. 

23.  Bought  of  Am.  Graphite  Co.  the  following  invoice  of  pencils  :  10  gr.  Colored,  @  $2. 75  ; 

100  gr.  University,  @  $2.75  ;  25  gr.  Dynamic,  @  $4.25. 
•^4.     Sold  Davidson  &  Smith  on  account  at  30  days,  3  cases,  120  reams.  Foolscap,  @  $3.45. 

26.  Bcfnght  of  N.  E.  Paper  Co.,  on  usual  terms,  6  cases,  240  reams.  Foolscap,  @  $3.00. 

27.  Paid  Wyant  &  Harvey,  cash,  for  invoice  of  the  16th  inst. 

28.  Sold  Pratt  Bros.  &  Co.,  on  account  at  30  days,  200  gr.  C.  S.  Pens,  @  90^ ;  50  doz.  C. 

S.  Rulers,  @  60^ ;  50  gr.  University  Pencils,  @  $3.25. 

29.  Bought  of  Wyant  &  Harvey,  300  gr.  C.  S.  Pens,  @  70^ ;  150  doz.  C.  S.  Rulers,  @  45j^. 


48  SINGLE  ENTRY  BOOK-KEEPING 

30.     Paid  the  following  freight  bills  for  the  month:    $18.41,  $4.67,  15.93  and  $4.82. 
"       The  partners  have  each  drawn  $50,  in  cash. 

You  will  now  balance  and  rule  up  your  Cash  Book,  post  your  Journal  entries,  take  an 
inventory  of  the  merchandise  on  hand,  make  a  statement  of  resources  and  liabilities,  carry 
each  partner's  share  of  the  net  gain  or  net  loss  to  his  account  and  bring  down  his  present 
worth,  as  directed  in  the  preceding  exercises. 

InrVENTORT  FOB  KoVEMBER. 

Merchandise:  50  gr.  Ex.  Pencils,  @  $2.25'  9  gr.  Lum.  Pencils,  @  $1.60;  13  gr. 
Assorted  Drawing  Pencils,  @  $3.55;  15  gr.  Colored  Pencils,  @  $2.75;  39  gr.  Dynamic 
Pencils,  @  $4.25;  90  gr.  Univ.  Pencils,  @  $2.75;  335  reams  Foolscap,  @  $3.00:  200  reams 
C.  Letter,  @  $1.75;  250  gr.  W.  Crayon,  @  14{^;  115  gr.  C.  Crayon,  @  38{?S;  313  gr.  C.  S. 
Pens,  @  70^;  209  doz.  C.  S.  Rulers,  @  45{^;  3  C  Fig.  Pads,  @  $5;  total,  $2389.40. 

Horse  and  Wagon,  $145;  Iron  Safe,  $175;  Office  Furniture,  $60;  Real  Estate,  $3000. 

STATEMENT   OF  RESOURCES  AND  LIABILITIES. 

Resources. 

Merchandise  Inventory, 2389.40 

Horse  and  Wagon, -. 145.00 

Iron  Safe,. 175.00 

Office  Furniture, 60.00 

Real  Estate, - - 3000.00 

Cash, 3713.63 

Personal  Accounts,  receivable  : 

Davidson  &  Smith, _ 783.50 

Wilson  &  Farley, ....     467.00 

Pratt  Bros.  &  Co., 372.50 

1623.00 
Bills  Receivable : 

Davidson  &  Smith, 211.75 

Belding  &  Wray, 422.00 

633.75 
Total  Resources, 11739.78 

Personal  Accounts,  payable :  Liabilities. 

American  Graphite  Co., 408. 75 

New  England  Paper  Co.,.. 720.00 

Wyant  &  Harvey, 277.50 

1406.25 

Present  Worth  of  firm, 10333.53 

Investment : 

Student, 4983.25 

Drawn  by  Student, 50.00 

Net  credit, 4933.26 

R.  C.  Harmon,. - 4978.24 

Drawn  by  Harmon, 50.00 

Net  credit, 4928.24 

Net  investment  of  firm, 9861.49 

Net  Gain  for  November, 472.04 


SINGLE  ENTRY  BOOKKEEPING.  49 

Student's  -J  Net  Gain, 236.02 

E.  C.  Harmon's  i  Net  Gain, 236.02 

Student's  Investment, 4933  25 

Net  Gain, 286*.02 

"         Present  Worth, g^^gg  27 

R,  C.  Harmon's  Investment, 4928.24 

"  "  NetGain, 236.02 

"  "  Present  Worth, 5164.26 

Present  Worth  of  firm, 10333.53 

This  business  will  be  discontinued  at  this  point.  It  is  believed  that  the  objects  sought 
to  be  attained  by  the  exercises  have  been  accomplished,  viz. :  to  acquaint  you  with  the  form, 
use,  essentials  and  manner  of  recording  promissory  notes,  and  to  illustrate  the  proper 
method  of  keeping  the  principals'  accounts  in  a  business  conducted  by  a  partnership. 


QUESTIOIsrS. 

Page  35. — Define  Bills  Receivable.  Define  Bills  Payable.  What  is  meant  by  a  nego- 
tiable written  promise  to  pay?  Give  the  import  of  the  promissory  note  illustrated  on  page 
35.  Page  36. — Explain  "indorsement."  What  is  the  Bill  Book  designed  to  contain? 
State  what  these  facts  are.  Page  38. — What  is  an  Invoice  ?  What  should  it  contain  ? 
When  and  how  is  an  invoice  receipted  ? 


Thieteei^th  Exeeoise. 

The  primary  objects  sought  in  this  exercise  are  to  illustrate  another  form  of  Journal, 
which  is  quite  popular  with  single-entry  book-keepers,  and  to  show  the  form  of  the  ordinary 
single-entry  Cash  Book. 

The  Journal  heretofore  employed  provided  for  placing  the  amounts  of  both  debits  and 
credits  in  the  right-hand  money  column,  while  in  that  illustrated  in  this  exercise  the  amounts 
of  the  debits  are  placed  in  the  left-hand  money  column  and  the  amounts  of  the  credits  in 
the  right-hand  column.  The  advantages  claimed  for  this  form  of  Journal  lie  in  lessening 
the  liability  to  errors  in  posting,  and  the  proof  of  the  correctness  of  the  Ledger  which  is 
afforded  by  the  footings  of  the  Journal  columns.  It  will  be  apparent  that,  since  all  of  the 
debits  are  placed  in  the  left-hand  money  column  and  all  of  the  credits  in  the  right-hand 
money  column,  the  footings  of  these  columns  must  be  the  same  as  the  footings  for  the 
month  of  the  corresponding  sides  of  the  Ledger. 

The  Cash  Book  heretofore  illustrated  provided  for  placing  the  amounts  of  cash  received 
on  the  left-hand  side  of  the  book,  and  the  amounts  of  cash  paid  on  the  right-hand  side.  In 
the  CasJi  Book  used  in  this  exercise  the  records  of  both  receipts  and  payments  are  entered 
on  the  same  page,  the  receipts  in  the  left-hand  money  column  and  the  payments  in  the  right- 
hand  money  column. 

A  Bank  Account  will  also  be  kept,  which  will  be  the  same  in  all  respects  as  a  personal 
account.     The  bank  will  be  debited  for  all  deposits  made  and  credited  for  all  checks  drawn. 
4 


60  SINGLE  ENTRY  BOOK-KEEPING. 

There  is  no  necessity  of  keeping  an  account  with  the  bank  in  the  Ledger,  as  the  record  of  the  currency 
and  checks  on  hand,  and  the  cash  in  bank,  may  all  be  kept  in  the  Cash  Book  as  though  it  were  all  ciirrency. 
When  the  record  is  all  kept  in  the  Cash  Book  it  is  usual  to  keep  a  record  of  the  cash  in  the  bank  in  the  check 
book,  by  adding  the  deposits  that  are  made  to  the  amount  in  the  bank  and  deducting  the  checks  that  are 
drawn.     See  illustration  on  page  55,  - 

In  addition  to  the  books  mentioned  above,  the  Bill  Book  will  be  kept  in  this  set  as 
heretofore. 

The  following  exercise  is  complete  in  itself,  having  no  relation  to  preceding  work.    • 

December,   190-, 

1.  Student  and  W.  D.  Martin  have  this  day  formed  a  co-partnership  for  the  purpose  of 

dealing  in  agricultural  implements,  under  the  firm  name  of  "Student"  &  Martin. 

Make  a  memorandimi  of  the  above  in  the  Journal. 

**       Student  invests  cash,  $3000,  a  horse  and  wagon,  valued  at  $275,  and  an  account  against 
Henry  L.  James  for  $412.50,  due  Dec.  15th. 

Enter  the  above  in  the  Journal  and  the  Cash  Book,  placing  the  debit  amounts  in  the  left-hand  money 
column  and  the  credit  amounts  in  the  right-hand  money  column,  in  both  books. 

**      W.  D.  Martin  invests  the  store,  in  which  the  firm  will  conduct  its  business,  valued  at 
$2500,  and  cash  to  make  his  investment  equal  Student's. 

"      Deposited  cash  in  Merchants  National  Bank,  $4000. 

The  Journal  entry  for  the  above  will  be 

"Merchants  National  Bank,  Dr.,  cash  deposited,  $4000." 
the  amount  being  entered  in  the  left-hand  or  debit  money  column.     A  memorandum  will  also  be  made  in 
the  cash  book,  as  follows: 

"  Deposited  in  Merchants  National  Bank,  $40(K)," 
the  amount  being  entered  in  the  right-hand  money  column. 

2.  Bought  of  the  "Wood  &  Mann  Harvester  Co.,  6  Clipper  Harvesters,  @  $110;  8  Clipper 

Mowers,  @  $45.     Gave  our  check  on  Merchants  National  Bank  for  the  amount. 

The  entry  for  the  above  will  be 

"  Merchants  National  Bank,  Cr.,  check  favor  Wood  &  Mann  Harvester  Co.,  $1020." 
See  form  of  check  on  page  55. 

3.  Bought  of  J.  H.  Dawson  &  Co.,  12  King  Corn  Cultivators,  @  $5.50;   6  Pony  Corn 

Cultivators,  @  $4.25.     The  terms  of  purchase  are  60  days;  2^  off  ten  days. 

4.  Sold  Henry  J.  Smith,  on  his  note  at  30  days,  with  interest,  payable  at  First  National 

Bank,  1  Harvester,  $130;  1  Mower,  $55. 

5.  Bought  of  the  St.  Lawrence  Manufacturing  Co.,  5  Chilled  Plows,  @  $11 ;   10  Spring 

Tooth  Harrows,  @  $15.     Terms,  60  days;  2j^  10  days. 

6.  Sold  Frank  S.  Upton,  for  cash,  1  C.  Mower,  $55;  1  K.  C.  Cultivator,  $5.50. 

8.  Bought  of  Van  Ness  &  Randall,  on  our  note  at  60  days,  payable  at  Merchants  National 

Bank,  20  doz.  Wood  Hand  Rakes,  @  $1.50  per  doz.;  6  Wheel  Rakes,  @  $18. 

9.  Sold  L.  H.  Newcomb,  on  his  note  at  15  days,  indorsed  by  R.  J.  Lansing,  1  Harvester, 

$127;  1  Mower,  $53;  6  W.  H.  Rakes,  @  25^/f. 

When  you  take  a  note,  indorsed  by  a  third  party  as  additional  security  to  the  paper,  always  have  it  made 
payable  to  the  indorser;  then,  should  you  wish  to  transfer  it,  your  indorsement  will  naturally  be  placed 
below  that  of  the  indorser,  making  him  first  liable  on  the  note. 

10.     Sold  L.  P.  Ryan,  for  cash,  1  S.  T.  Harrow,  $20;  6  W.  H.  Rakes,  @  25?f;  1  W.  Rake,  $25 


SINGLE  ENTRY  BOOK-KEEFINO.  51 

11.  Sold  D.  W.  Brown,  on  his  note  at  10  days,  payable  at  First  National  Bank,  1  C.  Hai- 

vester,  1125;  1  C.  Mower,  $55;  1  W.  Bake,  $24.50. 

12.  Sold  S.  C.  Wilson,  on  account  at  10  days,  1  P.  C.  Cultivator,  $6-  IS.  T.  Harrow,  $21; 

1  C.  Plow,  $15.50;  12  W.  H.  Eakes,  @  25^. 

13.  Gave  J.  H.  Dawson  &  Co.  a  check  for  their  bill  of  the  3rd  inst.,  less  2fc. 

Debit  J,  H.  Dawson  &  Co.,  in  the  Journal,  for  the  full  amount  of  their  bill  of  the  3rd  inst.,  and  credit 
the  bank  for  the  amount  of  the  check. 

15.  Henry  L.  James  cannot  pay  his  account,  due  to-day,  and  has  given  us  his  note  at  30 

days,  on  interest,  indorsed  by  W.  B.  Brown  and  payable  at  the  First  National  Bank, 
$412.50. 

"      Gave  the  St.  Lawrence  Manufacturing  Co.  a  check  for  the  amount  of  our  purchase  of 
the  5th  inst.,  less  the  discount  agreed  upon. 

16.  Bought  of  Wood  &  Mann  Harvester  Co.  6  C.  Harvesters,  @  $110.     Gave  them  our 

check  for  the  amount. 

17.  Sold  S.  C.  Wilson,  on  account  at  10  days,  1  C.  Mower,  $55;  1  C.  Plow,  $15. 

18.  Sold  Kobt.  Manning,  on  account  at  30  days,  1  C.  Harvester,  $125;  1  K.  C.  Cultivator, 

$7;  2  S.  T.  Harrows,  @  $20. 

"      Sold  Myron  Armstrong,  on  account  at  10  days,  1  W.  Eake,  $25;  1  K.  C.  Cultivator,  $7; 
1  C.  Plow,  $15. 

19.  Bought  of  Wood  &  Mann  Harvester  Co.,  6  C.  Mowers,  @  $55.     Paid  for  same  by  check. 
"      Deposited  $350  in  Merchants  Bank. 

21.  D.  W.  Brown  has  paid  his  note  of  the  11th  inst.,  in  cash,  $204.50. 

22.  Sold  A.  C.  Nelson,  for  cash,  1  C.  Harvester,  $125;  1  C.  Mower,  $55;  1  K.  C.  Cultivator, 

$11;  6  W.  H.  Eakes,  @  25{^. 

"      S.  C.  Wilson  has  paid  his  account  of  the  12th  inst.,  in  cash,  $45.50. 

"       "  Student "  has  drawn  $25,  and  W.  D.  Martin  $30,  cash,  for  private  use. 

23.  Sold  S.  C.  Wilson,  on  account  at  10  days,  1  W.  Eake,  $25;  6  W.  H.  Eakes,  @  25^. 

24.  Sold  Eobt.  Manning,  on  account  at  30  days,  1  C.  Mower,  $55;  1  W.  Eake,  $25;  1  C. 

Plow,  $15. 

"      L.  H.  Newcomb  has  paid  his  note  of  the  9th  inst.,  in  cash,  $181.50. 

"       Sold  Myron  Armstrong,  on  account  at  30  days,  1  C.  Harvester,  $125;  1  C.  Mower,  $55. 

"      Deposited  $400,  cash. 

26.  Sold  Geo.  Austin,  on  account,  payable  on  January  15th  next,  1  C.  Plow,  $15;  1  W. 

Eake,  $25;  12  W.  H.  Eakes,  ©25^;  1  S.  T.  Harrow,  $20. 

27.  S.  C.  Wilson  has  paid  his  account  of  the  17th  inst.,  in  cash,  $70. 

29.  Myron  Armstrong  has  paid  his  bill  of  the  18th,  in  cash,  $47. 

"      Bought  of  St.  Lawrence  Manufacturing  Co.,  6  C.  Plows,  @  $11.     Terms,  60  days, 
2^  off  10  days. 

30.  Sold-J.  H.  Brown,  for  cash,  1  0.  Harvester,  $125;  1  C.  Plow,  $15;  6  W.  H.  Eakes,  @  25^. 

31.  Deposited  cash,  $450. 

You  will  now  add  the  columns  of  your  Cash  Book,  and  ascertain  the  difference  between 
the  footings.     This  difference  should  be  placed  on  the  first  line  below  the  last  item,  m  the 


52  SINGLE  ENTRY  BOOK-KEEPING. 

right-hand  column,  in  red  ink,  using  for  explanation  "  Balance,"  written  to  the  left  under 
the  other  explanations,  also  in  red  ink. 

You  will  next  draw  a  single  red  line  across  both  money  columns  of  the  first  page  of  the 
Journal,  under  the  last  item,  then  bring  down  the  footings  of  the  columns,  and  draw  ,a 
double  red  line  across  both  columns  immediately  under  the  footings.  Then  carry  the  foot- 
ings to  the  top  of  the  next  page  and  add  both  columns  of  that  page  including  the  footings 
brought  up,  and  so  on  until  you  have  the  footings  of  both  columns  of  the  Journal  for  the 
entire  month. 

The  next  step  for  you  to  take  is  to  post  the  Journal  entries  to  the  Ledger,  as  heretofore, 
and  prove  the  correctness  of  the  posting  by  comparing  the  footings  of  the  sides  of  your 
Ledger  with  the  footings  of  the  corresponding  columns  in  the  Journal.  You  will  then  make 
an  inventory  and  a  statement  of  your  property  and  debts  as  heretofore,  which  should  agree 
with  the  results  given  below  ; 

Inventory  for  December. 

Merchandise. — 5  Clipper  Harvesters,  @  $110;  6  Clipper  Mowers,  @  $45;  8  King  Com 
Cultivators,  @  $5.50;  5  Pony  Corn  Cultivators,  @  $4.25;  5  Chilled  Plows,  @  $11;  5  Spring 
Tooth  Harrows,  @  $15;  15^  doz.  Wood  Hand  Rakes,  @  $1.50;  total,  $1038.50. 

Horse  and  Wagon,  $275;  Real  Estate,  $2500. 

Resources. —  Merchandise,  per  Inventory,  $1038.50;  Horse  and  Wagon,  $275;  Real  Estate, 
$2500;  S.  C.  Wilson,  $26.50;  Robt.  Manning,  $267;  Myron  Armstrong,  $180;  Geo. 
Austin,  $63;  Henry  J.  Smith's  note,  $185;  Henry  L.  James's  note,  $412.50;  Cash  on 
hand,  per  Cash  Book,  $22;  Cash  in  Bank,  per  Ledger,  $2799.43.     Total  Resources, 

$7768.93. 

Liabilities. — Note  favor  Van  Ness  &  Randall,  $138;  St.  Lawrence  Mfg.  Co.,  $66;  Total 
Liabilities,  $204;   Present  Worth  of  firm,  $7564.93. 

Net  investment  of  firm,  $7320;  Net  Gain  of  firm,  $244.93;  Students'  one-half  net  gain, 
$122.47;  W.  D.  Martin's  one-half  net  gain,  $122.46. 

Stndent  invested,  $3687.50;  Student  drew,  $25;  Student's  net  investment,  $3662.50;  Stu- 
dent's one-half  net  gain,  $122.47;   Student's  present  worth,  $3784.97. 

W.  D.  Martin  invested,  $3687.50;  W.  D.  Martin  drew,  $30;  W.  D.  Martin's  net  investment, 
$3657.50;  W.  D.  Martin's  one-haLt  net  gain,  $122.46;  W.  D.  Martin's  present  worth, 
$3779.96. 


DOUBLE  ENTRY  BOOKKEEPINQ,  53 


Double  Entry  Book-keeping. 

It  is  believed  that  the  principles  and  practice  of  Single  Entry  Book-keeping  have  been  so 
fully  and  clearly  explained  and  illustrated  in  the  foregoing  pages,  as  to  enable  the  diligent 
pupil  to  obtain  an  available  knowledge  of  the  subject.  '  In  the  following  pages  the  prin- 
ciples of  Double  Entry  book-keeping  will  be  explained  and  illustrated,  but  the  compass  of 
this  volume  will  not  permit  an  extended  presentation  of  the  various  methods  of  applying 
those  principles  to  the  numerous  kinds  of  business. 

"As  stated  on  page  5,  in  Single  Entry  only  personal  accounts  are  kept  in  the  Ledger, 
while  ^  in  Double  Entry,  accounts  are  kept  in  the  Ledger  with  tilings  as  well  as  persons. 
*  Every  species  of  property  belonging  to  the  business  must  be  represented  by  some  account  in 
the  Ledger,  and  *  every  obligation  due  the  proprietor,  as  well  as  his  obligations  to  others, 
must  be  represented  by  some  account  or  accounts  in  the  Ledger. 

Books  Required. 

"The  books  required  depend  much  upon  the  nature  and  extent  of  the  business,  *The 
books  usually  employed  are  Cah  Book,  Journal,  Ledger  and  Bill  Book.  "Sometimes  a 
Day  Book  is  used,  and  often  a  Sales  Book  and  an  Invoice  Book  are  employed. 

•  The  Cash  Book  used  in  Double  Entry  is  the  same  in  form  as  that  illustrated  on  pages 
8  and  9.  The  peculiarities  of  the  Double  Entry  Cash  Book  are  fully  explained  and  illus- 
trated on  pages  72  and  73,  affording  more  complete  knowledge  of  the  nature  of  that  book 
than  could  be  given  by  a  fuller  explanation  at  this  point. 

"  The  Journal  contains  the  debits  and  credits  involved  in  the  transactions,  arranged  in  a 
convenient  form  for  posting  to  the  Ledger. 

The  Ledger  is  the  same  in  form  as  that  illustrated  on  page  26.  "In  this  book  are 
grouped  under  appropriate  titles,  all  of  the  debits  and  credits  contained  in  the  Journal. 
"As  in  the  Ledger  on  page  26,  all  debits  and  credits  which  are  found  in  the  Journal,  affect- 
ing a  particular  person,  are  grouped  under  the  name  of  that  person,  so  in  the  Double  Entry 
Ledger,  all  debits  and  credits  of  similar  character  are  grouped  under  their  appropriate  titles  ^ 
as,  "all  debits  and  credits  of  Merchandise  found  in  the  Journal  are  grouped  in  the  Ledger 
under  the  title  "Merchandise,"  all  debits  and  credits  of  Bills  Eeceivable,  under  the  title 
"Bills  Eeceivable,"  etc. 

"  The  Bill  Book  in  Double  Entry  need  not  differ  from  that  used  in  Single  Entry,  whicl> 
is  explained  and  illustrated  on  pages  38  and  39. 

"The  Day  Book^  or  Blotter,  as  it  is  sometimes  called,  is  designed  to  contain  a  consec- 
utive historical  record  of  the  business. 

"  When  this  book  is  kept,  a  record  should  be  made  of  every  transaction  as  soon  as  it 
occurs.  "It  is  necessary  to  do  this  immediately  that  "no  important  fact  regarding  the 
matter  be  overlooked. 

"  The  Day  Book  is  not  very  generally  used  at  the  present  time,  especially  in  cases  where 
the  business  is  of  considerable  magnitude.  *°When  this  book  is  omitted  the  entries  are 
made  in  the  other  principal  books,  as  the  Cash  Book,  Journal  and  Sales  Book,  and  "  every 


54  DOUBLE  ENTRY  BOOKKEEPING. 

entry  is  accompanied  by  sufficient  explanation  of  the  transaction  as  to  leave  no  ground  for 
uncertainty  as  to  the  particulars  regarding  it.  "  The  fact  should  not  be  overlooked  that 
a  complete  record  of  every  transaction  should  be  preserved  in  some  form. 

"  The  Sales  Book  is  designed  to  contain  a  complete  record  of  the  sales  of  Merchandise. 

'^The  Invoice  Book  is  intended  to  contain  a  record  of  all  purchases  of  Merchandise. 

"The  Sales  Book  is  sometimes  a  tissue  book  in  which  impressions  of  the  invoices  of 
goods  sold  are  made  with  a  copying  press;  "'  and  an  Invoice  Book  is  sometimes  a  blank  book 
made  for  that  purpose,  into  which  is  pasted  invoices  of  goods  purchased. 


Gezsteral  Rules  for  Double  Eji^ttrt. 

Bule  1.  "  The  Proprietor  is  Credited 

^For  the  sum  of  his  resources  at  the  beginning  of  business; 
'  ^For  subsequent  investments  in  the  business;   and 

"For  his  net  gain,  if  any,  when  the  boohs  are  closed. 

Bule  2,  "  The  Proprietor  is  Debited 

^For  the  sum  of  his  liabilities  at  the  begiiinitig  of  business ; 

^For  such  sums  as  he  may  draw  out  of  the  business  from,  time  to  time ;  and 

"For  his  net  loss,  when  the  books  are  closed,  if  there  be  a  loss. 

Bnle  3.  "'  Persons  are  Debited 

^Wlien  they  become  indebted  to  us;  and 

^  When  we  get  out  of  their  debt,  wholly  or  in  part. 

Bule  4.  ^^  Persons  are  Credited 

'■When  we  get  into  their  debt;  and" 

"  When  they  get  out  of  our  debt,  wholly  or  in  part. 

Bule  5.   "  Cash  is  Debited  when  it  is  received  into  the  business^  from  whatever  source. 

Bule  6.   "  Cash  is  Credited  when  it  is  paid  out,  for  whatever  purpose. 

Bule  7.   "Bills  Receivable  is  debited  for  all  of  other  peoples  negotiable  written 
obligations,  when  they  are  received. 

Bule  8.   '*  Bills   Receivable  is  credited  when  other  peoples  negotiable  written  obli- 
gations held  by  us  are  paid  or  otherwise  disposed  of. 

Bule  9.  *'  Bills  Payable  is  credited  for  all  of  our  negotiable  written  obligations, 
token  they  are  issued. 

Bule  10.   "  Bills  Payable  is  debited  for  all  of  our  negotiable  written  obligations, 
when  they  are  paid  or  otherwise  cancelled. 

Bule  11.   "Merchandise  is  Debited /or  the  cost  of  all  merchandise  purchased. 

Bule  12.  ""Merchandise  is  Credited  for  the  proceeds  of  all  sales,  of  merchandise. 

Bule  13.  ^'  Expense  is  Debited  for  all  expenses  of  the  business,  as  clerk  hire,  fuel, 
light,  etc. 

Bule  14.   "  Expense  is  Credited  when  anything  of  value  is  disposed  of,  which  was 
previously  debited  to  Expense. 

Bule  15.  "  Interest  is  Debited  when  interest  or  discount  is  allowed  to  others. 

Bule  16.  "  Interest  is  Credited  when  interest  or  discount  is  allowed  to  us. 


DOUBLE  ENTRY  BOOK-KEEPING. 


55 


QUESTIOIN'S. 


*  Whut  accounts  are  kept  in  a  Single  Entry  Ledger  ?  ^  What  in  a  Double  Entry  Ledger? 
'"'  What  must  be  represented  in  a  Double  Entry  Ledger  ?  '  Upon  what  do  the  books 
required  in  Double  Entry  depend  ?  ''  What  books  are  usually  employed  ?  *  What  other 
books  are  sometimes  used  ?  '  What  form  of  Cash  Book  is  used  in  Double  Entry  ?  '"  What 
does  the  Journal  contain  ?  "-"^-'^  Explain  the  use  of  the  Ledger  employed  in  Double  Entry? 
'^  What  use  is  made  of  the  Day  Book  ?  '"  When  should  the  record  be  made  in  this  book  ? 
"'"Why  ?  "How  generally  is  this  book  used  ?  ''"When  this  book  is  not  employed  where 
are  the  entries  for  transactions  made  ?  *'  How  fully  are  the  entries  explained  ?  "  What  is 
said  of  recording  every  transaction  ?  "  What  is  the  Sales  Book  designed  to  contain  ?  "  The 
Invoice  Book  ?  "  What  other  form  of  Sales  Book  is  sometimes  kept  ?  "  AVhat  other  form 
of  Invoice  Book  ?  "  When  is  the  Proprietor  credited  ?  "  When  debited  ?  "  When  are  Per- 
sons debited  ?  ="•  When  credited  ?  ''  When  is  Cash  debited  ?  "  When  credited  ?  "  For 
what  is  Bills  Eeceivable  account  debited  ?  "  For  what  credited  ?  "  For  what  is  Bills  Pay- 
able account  credited  ?  ''For  what  debited  ?  "For  what  is  Merchandise  debited  ?  "For 
what  credited  ?  "  For  what  is  Expense  debited  ?  "  For  what  credited  ?  "  When  is  Inter- 
est debited  ?     "  When  credited  ? 


PAGE   OF   CHECK  BOOK: 


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56 


DOUBLE  ENTRY  BOOK-KEEPING. 


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DOUBLE  ENTRY  BOOK-KEEPING.  57 

FOUETEE^TH   EXERCISE. 

Entries  for  the  following  transactions  will  be  made  in  accordance  with  the  principles  of 
Double  Entry,  as  given  on  pages  53  and  54.  The  books  required  are  Journal  and  Ledger, 
'the  Journal  will  contain  sufficient  explanation  of  the  transactions  to  render  it  unnecessary 
to  make  a  record  of  them  in  the  Day  Book.  A  Cash  Book  and  Bill  Book  are  usually 
included  in  a  set  of  Double  Entry  books,  but  since  the  use  of  these  books  is  not  necessary  in 
this  connection  to  enable  you  to  learn  the  principles  of  double-entry,  it  is  thought  best  to 
omit  them.     The  entire  set  of  books  will  be  introduced  later. 

The  proper  Journal  entries  for  a  series  of  transactions  similar  to  the  following  will  be 
found  on  pages  58  to  61.  It  is  believed  that  careful  comparison  of  the  transactions  which 
are  now  to  be  Journalized,  with  these,  and  careful  study  of  the  rules  referred  to  in  that 
connection,  will  enable  you  to  perform  the  work  required  easily  and  intelligently. 

For  instance,  if  when  Wm.  H.  Raymond  invests  $3000  cash  in  business,  his  journal  entry  is 
Cash,  3000.00 

To  Wm.  H.  Raymond,  Investment,  3000.00 

it  will  be  apparent  that  when  you  invest  $2000  cash  in  business,  your  entry  should  be 
Cash,  2000.00 

To ''Student,'*  Investment,  2000.00 

In  the  following  set  you  will  use  your  own  name  instead  of  "Student."  The  explanation  of  the  Journal 
entry  should  be  written  at  the  right  of  the  entry,  as  shown  on  page  56,  instead  of  underneath  it,  as  shown 
in  the  Examples  on  pages  58-61. 

SERIES  OE  TRANSACTIONS. 

January  1,  190-, 

Commenced  a  general  produce  business  this  day  with  a  cash  capital  of  $2000.     {See  example 
No.  1,  page  58.  j 

Rented  the  store,  No.  121  Main  St.,  for  one  year,  at  $900,  the  rent  to  be  paid  monthly, 
at  the  close  of  each  month.     (iVo  Journal  entry  required. ) 

2.  Bought  a  horse  and  wagon  for  the  use  of  the  business  for  which  I  paid  cash,  $225. 

{See  example  JVo.  2,  page  58.) 

3.  Bought  for  cash,  100  bbls.  Flour,  @  $5.75,  $575.     {Example  No.  3,  page  59.) 

4.  Bought  of  Chas.  H.  Bryan    on  account,  at  30  days,  500  bush.  Oats,  @  38^,  $190. 

{Example  No.  4-) 
6.     Sold  S.  R.  Peer  for  cash,  150  bush.  Oats,  @  43^,  $64.50.     {Example  No.  5.) 

6.  Sold  J.  T.  White  &  Co.,  on  account  at  30  days,  50  bbls.  Flour,  @  $6.25,  $312.50. 

{Example  No.  6.) 

7.  Bought  for  cash,  200  bush.  Corn  @  520,  $104.     {Example  No.  3.) 

8.  Paid  cash  for  shoeing  horse,  $2.50,  and  for  repairing  wagon,  $5.75.     Total,  $8.25. 

{Example  No.  7.) 

9.  Sold  Geo.  Daniels,  on  his  note  at  30  days,  payable  at  the  Exchange  Bank,  25  bbls. 

Flour,  @  $6.30,  $157.50.     {Example  No.  8.) 
10.     Bought  of  the  Smith  Milling  Co.,  on  my  note  at  60  days,  payable  at  Traders  Bank, 
100  bbls.  Flour,  @  $5.80,  $580.     {Example  No.  9.) 

12.  Sold  D.  H.  Wells,  on  his  note  at  ten  days,  payable  at  Second  National  Bank,  25  bbls. 

Flour,  @  $6.35;  50  bush.  Oats,  @  43^.     {Example  No.  8.) 

13.  Sold  J.  T.  White  &  Co.,  on  account  at  30  days,  100  bush.  Corn,  @  60^;  150  bush.  Oats, 

@  440;  25  bbls.  Flour  @,  $6.35.     {Example  No.  6.) 


58 


DOUBLE  ENTRY  BOOK-KEEPING. 


14.  Bought  of  J.  L.  Cook,  on  account  at  10  days,  500  bush.  Com,  @  52^;  500  bush.  Oats, 

@  38^.     {Example  No.  J^.) 

15.  Sold  J.  T.  White  &  Co.,  on  account  at  30  days,  75  bbls.  Flour,  @  16.25.    {Example  No.  6. ) 

16.  Bought  of  the  Newark  Mills  Co.,  on  account  at  10  days,  500  bbls.  Flour,  @  15.80. 

{Example  No.  4-) 

17.  Sold  for  cash,  50  bbls.  Flour,  @  $6.25;  100  bush.  Oats,  @  45{*.     {Example  No.  5. 

18.  Sold  D.  P.  Howard,  on  account  at  10  days,  150  bush.  Corn,  @  62^.     {Example  No.  6.) 

20.  Sold  Henry  Wilson,  on  his  note  at  30  days,  payable  at  Exchange  Bank,  150  bbls.  Flour, 

@  $6.30.     {Example  No.  8.) 

21.  Geo.  Daniels  proposes  to  pay  his  note  of  $157.50,  due  Feb.  8th,  providing  I  will  allow 

him  discount  on  the  amount  for  the  time  it  has  yet  to  run,  which  I  have  accepted. 
Discount,  18  days,  47^.     {Example  No.  10. ) 

22.  Sold  D.  P.  Howard,  on  account  at  10  days,  200  bush.  Oats,  @  44^;  150  bush.  Com, 

@  61{Z5.     {Example  No.  6.) 

24.  Paid  J.  L.  Cook  cash  for  my  purchase  of  the  14th  inst.     {Example  No.  11. ) 

25.  D.  H.  Wells  has  paid  his  note,  due  to-day,  $180.25,  in  cash.     {Example  No.  12.) 

26.  Gave  Newark  Mills  Co.  $1000,  cash,  and  my  note  at  30  days,  with  interest,  payable  at 

Traders  Bank,  for  $1900,  in  settlement  of  my  purchase  of  the  16th  inst.     {Example 
No.  13.) 

27.  Sold  for  cash,  75  bbls.  Flour,  @  $6.30.     {Example  No.  5.) 

28.  D.  P.  Howard  has  settled  his  account  of  $93,  due  to-day,  by  giving  me  his  note  at  10 

days,  payable  at  Exchange  Bank.     {Example  No.  IJ/.. ) 

30.  Drew  $50,  cash,  for  private  use.     {Example  No.  15.) 

31.  Paid  one  month's  rent,  in  cash,  $75.     {Example  No.  2. ) 

As  stated  at  the  opening  of  this  exercise,  transactions  are  given  below  similar  in  character 
to  those  embraced  in  this  set,  which  are  accompanied  by  their  proper  Journal  entries.  By 
comparing  your  transactions  with  these,  and  observing  the  Journal  entries,  it  is  believed  that 
you  will  experience  no  difficulty  in  properly  journalizing  every  transaction  in  the  exercise. 

References  are  also  made  to  the  rules  involved,  which  are  grouped  on  page  54,  and  you 
should  consult  these  in  journalizing  every  transaction,  that  you  may  secure  complete  famil- 
iarity with  the  principles  involved. 


Transaction. 


EXAMPLE  No.  1. 
January,  190-, 


Journal  Entry. 


Wm.  H.  Raymond  commenced  business 
this  day  with  a  cash  capital  of  $3000. 
{Rtde  5  and  Rule  1,  part  a,  page  54-.) 


Cash, 
To  Wm.  H.  Raymond, 
Investment. 


3000 


3000 


Transaction. 


EXAMPLE  No.  2. 


Journal  Entry. 


2. 

Bought  a  Horse,  and  Wagon  for  the  use 
of  the  business,  for  which  I  paid  $275. 
{Rule  13  and  Rule  6,  page  54.) 


2. 
Expense, 
To  Cash, 

Horse  and  Wagon. 


275 


275 


DOUBLE  ENTRY  BOOK-KEEPING. 
EXAMPLE  No.  3. 


Transaction. 


Journal  Entry. 


59 


Bought,  for  cash,  150  bbls.  Pork, 
$1500. 

{Rule  11  and  Rule  6.) 


3. 

Mdse., 
To  Cash, 

150  bbls. 


1500 


1500 


EXAMPLE  No.  4. 


Transaction. 


Journal  Entry. 


Bought  of  Henry  Day,  on  account  at  60 
days,  500  bush.  Wheat,  @  $1. 
{Rule  11  and  Rule  4,  page  6.) 


4. 

Mdse., 
To  Henry  Day, 

500  bush.  Wheat,  $1, 
at  60  days. 


500 


500 


EXAMPLE  No.  5. 


Transaction. 


Journal  Entry. 


5. 
Sold  D.  W.  Strong,  for  cash,  100  bbls. 
Flour,  @  $6. 

{Rtile  5  and  Rule  13.) 


5. 

Cash, 
To  Mdse., 

]  00  bbls.  Flour,  @ 


600 


600 


EXAMPLE  No.  6. 


Transaction. 


Journal  Entry. 


6. 
Sold  J.  F.  Beers,  on  account  at  30  days, 
100  bush.  Wheat,  @  $1. 

{Rule  3,  part  a,  and  Rule  12.) 


6. 
J.  F.  Beers, 
To  Mdse., 

100  bush.  Wheat, 


100 


100 


EXAMPLE  No.  7. 


Transaction. 


Jotirnal  Entry. 


Paid  cash  for  Repairing  Wagon,  $5,  and 
Shoeing  Horse,  $2. 

{Rule  13  and  Rule  6.) 


Expense, 
■  To  Cash, 

Eepairing  Wagon, 
Shoeing  Horse,  82. 


EXAMPLE  No.  8. 


Transaction. 


Journal  Entry. 


9. 

Sold  M.  W.  Eandall,  on  his  note  at  60 
days,  payable  at  Ward's  Bank,  150  bush. 
Wheat,  @  $1.10. 

{Rule  7  and  Rule  12.^ 


9. 
Bills  Eeceivable, 
To  Mdse., 

M.  W.  Randall's  note, 
per  Bill  Book,  for 
150  bush.  Wheat,  @ 
11.10. 


165 


165 


60 


DOUBLE  ENTRY  BOOKKEEPING. 
EXAMPLE  No.  9. 


Transaction. 


Journal  Entry. 


10. 

Bought  of  Mumford  Mills,  on  my  note 
at  90  days,  payable  at  Merchants  Bank,  200 
bbls.  Flour,  @  $G.10. 

{Rule  11  and  Rule  9.) 


10. 
M^dse. 

To' Bills  Payable, 

200  bbls.  Flour,  @ 
$6.10.  Note  at  90 
davs. 


1230 


1230 


EXAMPLE  No.  10. 


Transaction. 


Journal  Entry. 


21. 

M.  "W.  Randall  promises  to  pay  his  note 
for  $165,  due  March  13,  providing  I  will  allow 
him  the  discount  for  time  it  has  yet  to  run, 
which  I  accept.     Discount,  51  days,  $1.40. 

{Rule  5,  Rule  15  and  Rule  8.) 


21. 
Cash, 
Interest, 

To  Bills  Eeceivable, 

M.  W.  Randall  has 
paid  his  note  in 
advance. 


163 

1 


60 
40 


165 


EXAMPLE  No.  11. 


Transaction. 


Journal  Entry. 


24. 
Paid  Henry  Day,  cash,  for  our  purchase 
of  the  4th  inst.,  $500. 

{Rule  3,  part  h,  and  Rule  6.) 


24. 
Henry  Day, 
To  Cash, 

Lifullof  billof  the4th. 


500 


500 


Transaction. 


EXAMPLE  No.  12. 


Journal  Entry. 


25. 
D.  W.  Johnson  has  paid  his  note,  due 
to-day,  $240. 

{Rule  5  and  Rule  8.) 


25. 
Cash, 

To  Bills  Receivable, 

D.  W.  Johnson's  note. 


240 


240 


EXAMPLE  No.  13. 


Transaction. 


Journal  Entry. 


26. 

Gave  Cataract  Mills  $1200,  cash,  and  my 
note  at  30  days,  with  interest,  payable  at 
First  National  Bank,  for  $1500,  in  settle- 
ment of  my  purchase  of  the  2nd  inst. 

{Rule  3,  part  h,  Rule  6  and  Rule  9. ) 


26. 
Cataract  Mills, 
To  Cash, 
"  Bills  Payable, 

Paid  for  bill  of  the 
2nd  inst. 


2700 


1200 
1500 


EXAMPLE  No.  14. 


Transaction. 


Journal  Entry. 


28. 

R.  H.  Sage  has  settled  his  account  of 
$118,  due  to-day,  by  giving  his  note  at  30 
days,  payable  at  Merchants  Bank. 

{Rule  7  and  Rule  4,  part  h.) 


28. 
Bills  Receivable, 
To  R.  H.  Sage, 

Settlement  of  account. 


118 


118 


DOUBLE  ENTRY  BOOK-KEEPING. 
EXAMPLE  No.   15. 


61 


Transaction. 


Journal  Entry. 


30. 
Drew  $100  for  private  use. 
{Rule  2,  part  i,  and  Rule  6.) 


30. 
Wm.  H.  Kaymond, 
To  Cash, 

Drew  for  private  use. 


100 


100 


You  will  now  post  the  Journal  entries  for  the  month.  It  will  be  observed  that  instead  of 
one  posting  for  a  Journal  entry,  as  in  Single  Entry,  there  are  two  in  every  case,  and  in  two 
instances  there  are  three. 

In  posting  the  First  Journal  Entry  you  will  open  an  account  with  yourself.  Write 
.  your  name  at  the  top  of  the  first  blank  page  in  your  Ledger,  and  credit  that  account,  Jan.  1, 
Cash,  1,  2000.  Eight  lines  below  that  open  an  account  with  Cash,  by  writing  Cash  in 
the  center  of  the  line.  Then  place  on  the  left-hand  side,  Jan.  1,  Student,  using  your  own 
name  as  already  instructed,  1,  2000.  You  will  remember  to  check  the  posted  entries  in 
the  Journal  as  instructed  for  Single  Entry.  Check  both  debits  and  credits. 
In  posting  the 

Second  Journal  Entry, 
You  will  open  an  account  with  Expense  fifteen  lines  below  Cash,  and  write  on  the  debit 
side,  Jan.  2,   Cash,  1,  2.25.     Then  on  the  credit  side  of  the  Cash  account  write,  Jan.   2, 
Expense,  1,  2.25. 

Journal  Entry,  January  3, 
Will  be  posted  by  opening  an  account  with  Merchandise  at  the  top  of  the  next  page,  and 
entering  on  the  debit  side,  Jan.  3,  Cash,  1,  5.75 ;  and  on  the  credit  side  of  the  Cash  account 
3,  Mdse.,  1,  5.75. 

Journal  Entry,  January  4. 

Enter  on  the  debit  side  of  the  Merchandise  account,  Jf,  Chas.  H.  Bryan,  1,  190.  .Then 
open  an  account  with  Chas.  H.  Bryan  half-way  down  the  page,  and  on  the  credit  side 
write  Jan.  Jf,  Mdse.,  1,  190. 

Journal  Entry,  January  5. 
Enter  on  the  debit  side  of  the  Cash  account,  5,  Mdse.,  1,  64..50,  and  on  the  credit  side  of 
the  Merchandise  account,  Jan.  5,  Cash,  1,  6^.50. 

Journal  Ent^y,  January  6. 
Open  an  account  with  J.  T.  White  &  Co.  eight  lines  below  the  line  on  which  you  opened 
an  account  with  Chas.  H.  Bryan,  and  on  the  debit  side  write,  Jan.  6,  Mdse.,  1,  312.50,  and 
on  the  credit  side  of  the  Merchandise  account  write  6,  J.  T,  White  &  Co.,  1,  312.50. 

Journal  Entry,  January  7, 
Will  be  posted  the  same  as  the  third,  excepting  that  you  will  substitute  the  proper  date 
and  amount. 

Journal  Entry,  January  8. 
Enter  on  the  debit  side  of  Expense,  8,  Cash,  1,  8.25;  and  on  the  credit  side  of  the  Cash 
account  write,  8,  Expense,  1,  8.25. 

Journal  Entry,  January  9. 
Open  an  account  with  Bills  Receivable  on  the  top  of  the  next  page,  and  on  the  debit 
side  write,  Jan.  9,  Mdse.,  1,  157.50;   and  on  the  credit  side  of  Merchandise  write,  9,  Bills 
Receivable.  1,  157.50 


62 


DOUBLE  ENTRY  BOOK- KEEPING. 


Journal  Entry,  January  10. 

Debit  Merchandise  account,  10,  Bills  Payable,  1,  580 ;  and  then  open  an  account  with 
Bills  Payable  one-fourth  of  a  page  below  Bills  Keceivable,  and  on  the  credit  side  write 
Jan.  10,  Mdse.,  1,  580. 

Since  entries  for  January  12  to  20,  inclusive,  are  similar  in  form  to  entries  which  have  preceded  them,  it 
is  believed  that  you  will  have  no  difficulty  in  posting  them.     Give  all  new  accounts  one-fourth  of  a  page  space. 

Journal  Entry,  January  21. 

Debit  Cash,  21,  Bills  Receivable,  2,  151. OS.  Then  open  an  account  with  Interest,  one- 
fourth  of  a  page  below  D.  P.  Howard's,  and  on  the  debit  side  write  Jan.  21,  Bills  Receivable,  2, 
.JfT.     Then  write  on  the  credit  side  of  Bills  Receivable  account,  Jan.  21,  Sundries,  2,  157.50. 

You  will  observe  that  the  explanation  in  the  credit  posting  of  this  entry  is  unlike  anything  before 
encountered.  Sundries  means  several  items,  and  is  used  to  represent  the  two  debits,  thus  saving  one  credit 
in  Bills  Receivable  account. 

The  entry  for  Jan,  22  is  similar  to  that  of  Jan.  6,  hence  the  instructions  given  for  that  will  apply  to  thir. 

Journal   Entry,  January  24. 

Debit  J.  L.  Cook,  Jan.  24,  Cash,  3,  ^50.  Then  on  the  credit  side  of  the  Cash  account 
write  24,  J.  L.  Cook,  3,  450. 

Remember  to  rule  up  an  account  when  it  balances. 

Journal  Entry,  January  25. 

Debit  Cash  account  25,  Bills  Receivable,  3,  180.25,  and  credit  Bills  Receivable  accouur 
^5,  Cash,  3,  180.25. 

Journal  Entry,  January  26. 
Debit  Newark  Mills  account  Jan.  26,  Sundries,  3,  2900,  and  then  credit  Cash  accouuti 
26,  Newark  Mills,  3,  1000,  and  credit  Bills  Payable  account  26,  Newark  Mills,  3,  1900. 

The  entry  for  Jan.  27  is  similar  to  that  of  Jan,  5,  and  that  of  Jan.  31  is  similar  to  that  of  Jan.  8. 


The  Trial  Balaistce. 

*'  Since  the  debit  of  each  Journal  entry  is  eq^al  to  the  credit,  and  as  all  of  the  debits  in 
the  Journal  are  posted  to  the  debit  side  of  the  Ledger,  and  the  credits  to  the  credit  side  of 
the  Ledger,  it  will  be  apparent  that  the  aggregate  of  the  debit  side  of  the  Ledger  should 
equal  that  of  the  credit  side. 

"  The  Trial  Balance  is  a  test  employed  to  determine  whether  the  Ledger  is  in  balance; 
in  other  words,  whether  the  sum  of  the  debits  is  equal  to  the  sum  of  the  credits.  "You 
will  add  your  ledger  accounts  in  pencil,  placing  the  footings  immediately  below  the  last 
amount,  in  very  small  figures,  as  illustrated  below. 

John  Smith. 


Jan. 


Mdse., 


] 

400 

Jan. 

12 

2 

350 

(( 

21 

2 

175 

(( 

24 

3 

141 

50 

4 

192 

1269 

75 

25 

Cash, 

Bills  Receivable, 

Cash, 


2 

500 

3 

250 

4 

100 

850 

DOUBLE  ENTRY  BOOK-KEEPING. 


63 


You  will  next  make  a  Trial  Balance  of  your  Ledger,  on  the  first  blank  page  of  your 
Statement  and  Trial  Balance  Book,  by  transferring  to  that  page,  from  the  Ledger,  the 
names  and  footings  of  those  accounts  as  do  not  balance,  placing  the  debit  footings  in  the 
left-hand  column,  and  the  credit  footings  in  the  right-hand  column.  Next  foot  and  rule 
these  columns,  placing  the  footings  between  the  ruled  lines.  If  your  Trial  Balance  is 
correct,  the  footings  of  the  sides  will  be  equal,  and  it  will  correspond  in  all  particulars  to 
the  one  given  below. 


TRIAL  BALANCE,   JANUARY  31,   190- 


Dr. 


Or. 


Student, 

Cash, 

Merchandise, 

C.  H.  Bryan 

J.  T.  White,&  Co., 

Expense, 

Bills  Eeceivable, 

Bills  Payable, 

D.  P.  Howard, 

Interest, 


50 

2000 

3331 

78 

2487 

4799 

3515 
190 

1066 

308 

25 

1375 

75 

337 

2480 

272 

50 

47 

93 

11103 

75 

11103 

25 

75 


75 


75 


A  statement  of  the  property  on  hand  should  be  made  precisely  as  you  have  already  been 
instructed  to  do  in  the  Single  Entry  exercises,  and  with  the  same  object  in  view  —  to  ascer- 
tain the  results  of  the  business. 

Inventory. 

225  bbls.  Flour,  @  5.80, 1305.00 

350  bush.  Oats,  @  38?;5, I33,  qo 

300      ''       Corn,   @  520, 156.00 

1594.00 
Horse  and  Wagon, 225.00 

Total  Inventory, 1819.00 


Losses  ae^d  Gai^s. 

The  net  gain  or  the  net  loss  of  the  business  may  be  ascertained  by  exactly  the  same 
process  as  in  Single  Entry,  and  it  may  also  be  found  by  another  operation  —  by  the  use  of 
those  accounts  that  do  not  appear  in  Single  Entry. 

In  this  exercise  there  are  but  three  accounts  that  show  gains  or  losses,  which  are 
Merchandise,  Expense,  and  Interest.  All  of  the  others,  excepting  that  of  the  proprietor, 
which  are  not  in  balance,  show  resources  and  liabilities.  The  losses  and  gains  may  be  shown 
from  the  three  accounts  named,  by  making  a  statement  from  those  accounts  as  illustrated 
on  the  next  page,  and  which  is  called  a  Statement  of  Losses  and  Gains. 


64  DOUBLE  ENTRY  BOOK-KEEPING. 

STATEMENT   OF  LOSSES  AKD   GAINS. 

An  explanation  of  this  Statement  will  be  found  immediately  below  it. 

Merchandise,  Sales  (the  credit  side  of  Merchandise  account), 3515.75 

'■'  Inventory, 1594.00 

**  Total  proceeds, 5109. 75 

"  Cost  (the  debit  side  of  Merchandise  account), 4799.00 

Gain, 310.75 

Expense,  Cost, 308.25 

"         Inventory, 225.00 

"         Loss, 83.25 

Interest,  Cost, .47 

Total  loss, "  83.72 

Net  gain  for  the  month, 227.08 

Investment, 2000.00 

Amount  drawn, i 50. 00 

Net  investment, 1950.00 

Present  Worth,.. 2177.03 

As  you  have  already  been  made  aware.  Merchandise  account  is  debited  with  the  entire 
cost  of  the  merchandise  purchased,  and  is  credited  with  the  proceeds  from  the  sales  of 
merchandise.  The  profit,  or  loss,  on  the  merchandise  which  you  have  handled  may,  there- 
fore, be  determined  by  adding  the  amount  of  merchandise  unsold,  shown  by  the  Inventory, 
$1594,  to  the  proceeds  from  sales  of  merchandise,  as  shown  by  the  credit  side  of  Merchandise 
account,  $3515.75,  and  finding  the  difference  between  that  sum,  $5109.75,  and  the  cost  of  the 
merchandise,  shown  by  the  debit  side  of  the  Merchandise  account,  $4799,  which  is  8310.75. 
The  Expense  account  shows  a  loss  of  $83.25,  as  the  debit  of  that  account  shows  the  expenses 
of  the  business,  $308.25,  and  there  is  a  credit  in  the  form  of  an  inventory  of  only  $225;  and 
since  Interest  account  is  debited  with  the  cost  of  interest  and  discount,  it  will  be  clear  that 
the  debit  of  that  account,  470,  is  also  a  loss.  Hence,  the  net  loss  for  the  month  may  be 
found  by  deducting  from  the  gain  on  Merchandise,  $310.75.  the  sum  of  the  loss  on  Expense, 
$83.25,  and  that  on  Interest,  47^,  or  $83.72,  which  is  $227.03,  the  net  gain  for  the  month. 

To  prove  the  correctness  of  the  foregoing  operation,  it  is  suggested  that  you  now  find  the 
net  gain  for  the  month  as  instructed  to  do  in  Single  Entry,  by  making  a 

STATEMENT   OF  RESOURCES  AND  LIABILITIES. 

Resources. 

Mdse.,  Inventory, 1594.00 

Horse  and  Wagon, 225.00 

1819.00 
Personal  Accounts,  receivable: 

J.  T.   White  &  Co., 1066.00 

D.  P.  Howard, 179.50 

1245.50 

Cash, 744.53 

Bills  Receivable: 

Henry  Wilson's  Note, 945.00 

D.  P.  Howard's  Note, 93.00 

1038.00 
Total  Resources, 4847.03 


DOUBLE  ENTRY  BOOK-KEEPING.  65 

Personal  Account:  Liabilities. 

C.  H.  Bryan, 190.00 

Bills  Payable  r 

Note,  favor  of  Smith  Milling  Co., 580.00 

"  "     Newark  Mills  Co., ] 900. 00 

2480.00 

Total  Liabilities, 2670.00 

Present  Worth, 2177.03 

Investment, 2000.00 

Amount  drawn, 50.00 

1950.00 
Net  Gain, 227.03 

You  will  observe  that  the  results  of  the  foregoing  statements  are  alike,  showing  that  the 
net  gain  for  the  month  has  been  $226.95,  and  that  your  present  worth  is  $2176.95.  It  is 
suggested  that  you  now  take  a  Trial  Balance  and  Inventory,  and  make  the  statements  again, 
without  referring  to  the  text-book  or  to  the  work  which  you  have  performed. 

Closing  the  Ledger 

You  have  ascertained  the  condition  of  the  business,  and  it  now  remains  for  you  to  make 
your  Ledger  show,  not  only  your  Present  Worth  as  was  required  in  Single  Entry,  but  also 
the  net  gain  from  those  accounts  in  your  Ledger  which  show  gains  and  losses.  This  may 
be  done  as  follows  : 

Open  an  account  in  your  Ledger  with  Loss  and  G-ain",  one-fourth  of  a  page  below 
Interest  account.  Then  enter  on  the  credit  side  of  the  Merchandise  account,  in  red  ink,  Jan. 
31,  Inventory,  159^,  and  on  the  debit  side  of  the  Merchandise  account,  also  in  red  mh, 
Jan.  SI,  Loss  and  Gain,  310.76.  Then  transfer  this  amount,  310.75,  to  the  credit  side  of  the 
Loss  and  Gam  account,  in  Hack  ink,  Jati.  SI,  Mdse.,  S10.75,  and  rule  up  the  Merchandise 
account,  bringing  down  the  footings  between  the  ruled  lines  as  instructed  in  Single  Entry. 
Then  transfer  the  Inventory  below  the  double  rulings  on  the  debi£  side  of  the  Merchandise 
account,  in  black  ink,  Feb.  1,  Inventory,  159^.. 

On  the  credit  side  of  the  Expense  account  write,  in  red  ink,  Jan.  SI,  Inventory,  225, 
and  again  on  the  credit  side  of  Expense  account,  also  in  red  ink,  Jan.  SI,  Loss  and  Gain, 
83.25.  Transfer  this  amount  to  the  debit  side  of  the  Loss  and  Gain  account,  in  black  ink, 
Jan.  31,  Expense,  83.26,  and  rule  up  the  Expense  account,  bringmg  down  the  footings 
between  the  ruled  lines.  Then  transfer  the  Inventory  below  the  double  rulings  on  the  debit 
side  of  the  Expense  account,  in  black  ink,  Feb.  1,  Inventory,  226. 

You  will  next  close  the  Interest  account  by  writing  on  the  credit  side,  in  red  ink,  Jan.  31, 
Loss  and  Gain,  Jf7<p,  and  transfer  this  amount  to  the  debit  side  of  the  Loss  and  Gain  account, 
in  black  ink,  Jan.  31,  Interest,  Jf.7<^,  after  which  you  will  draw  the  double  lines  under  the 
amounts. 

The  Loss  and  Gain  account  now  contains  all  of  the  items  of  gains  and  losses  for  the 
month,  and  the  difEerence,  the  net  gain,  should  be  placed  on  the  smaller  side,  which  in  this 
case  is  the  debit  side,  in  red  ink,  Jan.  31,  Student,  227.03,  and  be  transferred  to  the  credit 
side  of  your  account  in  black  ink,  Jan.  31,  Loss  and  Gain,  227.03,  after  which  the  Loss  and 
Gain  account  should  be  ruled  up  and  the  footings  brought  down  as  heretofore  instructed. 

Your  account  now  contains  your  investment,  your  net  gain  for  the  month,  and  the 
amount  you  drew  for  private  use;  the  difference  should  show  your  present  worth.  Enter  on 
the  debit  side,  in  red  ink,  SI,  Present  Worth,  2177.03,  rule  up  the  account,  bring  down  the 
footings,  and  transfer  the  present  worth  below  the  rulings  on  the  credit  side,  in  black  ink, 
Feb.  1,  Present  Worth,  2177.03.  This  completes  the  closing  of  the  Ledger. 
5 


66  DOUBLE  ENTRY  BOOK-KEEPING. 

FifteejN'th  Exercise. 

The  design  of  this  exercise  is  to  explain  and  illustrate  the  process  of  changing  a  set  of 
books  from  Single  Entry  to  Double  Entry.  The  work  will  be  performed  in  accordance  with 
the  principles  of  Single  Entry,  and,  after  the  results  of  the  business  have  been  ascertained, 
the  books  will  be  changed  to  Double  Entry  and  the  business  continued. 

This  exercise  is  independent  of  all  preceding  work.  The  books  to  be  employed  are 
Cash  Book,  the  same  in  form  as  that  illustrated  on  pages  8  and  9 ;  Journal,  using  the  debit 
and  credit  columns;  Bill  Book,  and  Ledger. 

February  1,  190-, 

Commenced  business  this  day  with  cash  on  hand,  13000;  an  account  against  R.  L.  Marvin 
of  $185,  due  March  1;  a  note  for  $345,  at  two  months  from  Jan.  8,  payable  at  Traders 
Bank,  made  by  D.  T.  Harris  and  indorsed  by  R.  W.  Bullock;  and  the  store  in  which 
this  business  will  be  conducted,  valued  at  $1500. 

2.  Bought  of  M.  S.  Watson,  on  my  note  at  30  days,  payable  at  the  First  National  Bank, 

500  bbls.  Flour,  @  $5.75. 

3.  Obtained  a  Policy  of  Insurance  on  the  store  at  a  valuation  of  $1000,  at  2^  premium, 

and  on  the  contents  for  $2500,  at  2^  premium.     Paid  the  premium  in  cash,  $70. 

4.  Bought  of  H.  J.  Brown,  on  account  at  15  days,  1000  bush.  Corn,  @  600. 

5.  Sold  P.  "W.  JohnsoQ  &  Co.,  on  account  at  15  days,  100  bbls.  Flour,  @  $7. 

6.  Sold  F.  H.  Wolcott,  for  cash,  125  bbls.  Flour,  @  $6.90. 

8.  Drew  $100,  cash,  for  private  use. 

9.  Sold  P.  W.  Johnson  &  Co.,  on  account  at  15  days,  250  bush.  Corn,  @  70^. 

10.  Sold  A.  B.  Ingraham,  for  cash,  50  bbls.  Flour,  @  $6.90;  100  bush.  Corn,  @  70^. 

11.  Bought  of  H.  J.  Brown,  on  account  at  15  days,  1200  bush.  Oats,  @  400. 

12.  Sold  P.  "W.  Johnson  &  Co. ,  on  account  at  15  days,  200  bush.  Oats,  @  480. 

15.  Sold  F.  H.  Wolcott,  on  his  note  at  10  days,  payable  at  Traders  Bank,  150  bush.  Oats, 

@  480;  100  bush.  Com,  @  700. 

16.  Sold  P.  W.  Johnson  &  Co.,  on  account  at  15  days,  100  bbls.  Flour,  @  $7;  200  bush. 

Oats,  @  480. 

17.  Bought  of  M.  S.  Watson,  on  my  note  at  30  days,  payable  at  First  National  Bank,  600 

bbls.  Flour,  @  $5.75. 

19.  Paid  H.  J.  Brown  cash  in  full  for  my  purchase  of  the  4th  inst. 

20.  Sold  C.  J.  Woodin,  on  account  at  10  days,  500  bush.  Oats,  @  480. 

"  P.  W.  Johnson  &  Co.  have  paid  cash  for  their  purchase  of  the  5th  inst.,  $700. 

22.  Bought  of  H.  J.  Brown,  on  account  at  15  days,  1000  bush.  Oats,  @  400. 

"  Sold  C.  J.  Woodin,  on  account  at  10  days,  350  bush.  Corn,  @  700. 

24.  P.  W.  Johnson  &  Co.  have  paid  cash  in  full  for  their  purchase  of  the  9th  inst.,  $175. 

25.  Bought  of  S.  G.  Hooker,  on  account  at  15  days,  900  bush.  Corn,  @  600. 
"  F.  H.  Wolcott  has  paid  his  note  of  the  15th  jnst.,  $142,  in  cash. 

26.  Paid  H.  J.  Brown  cash  in  full  for  my  purchase  of  the  11th  inst.,  $480. 

27.  P.  W.  Johnson  &  Co.  have  paid  for  their  purchase  of  the  12th,  $96,  in  cash. 


DOUBLE  ENTRY  BOOK-KEEPING.  67 

You  will  now  balance  your  Cash  Book,  bringing  the  balance  of  cash  below  the  rulings, 
placing  the  amount  in  the  credit  column;  post  the  Journal  entries;  make  a  Statement  of 
Resources  and  Liabilities;  carry  the  net  gain  or  net  loss  to  your  account;  and  close  youi 
account,  bringing  the  present  worth  below  the  ruling.  Give  Merchandise,  Cash  and  Bills 
Receivable  accounts  each  one-half  of  a  page  space.  Give  all  other  accounts  one-fourth  of  a 
page  each. 

IlTVElirrOET. 

Merchandise.— 725  bbls.  Flour,  @  $5.75  •  1100  bush.  Com,  @  60j^ ;  1150  bush.  Oats, 
@  40^;  total,  $5^88.75. 

Real  Estate. — Store  and  Lot,  $1500.00. 

Expense. — Insurance  premium  paid,  $70,  of  which -y-  is  unexpired,  $64.17;  total  inven- 
tory, $6853.92. 

STATEMENT   OF  RESOURCES  AND  LIABILITIES. 

Resources. 

Mdse.,  Inventory, 5288. 75 

Real  Estate,  Store  and  Lot, 1500.00 

Expense,  unexpired  insurance, 64. 17 

6852.92 
Cash,  per  Cash  Book, 3140.50 

Bills  Receivable: 

D.  T.  Harris'  note,  per  Bill  Book, 345.00 

Personal  Accounts,  receivable : 

R.  L.  Marvin, 

P.  W.  Johnson  &  Co. ,.. ■ — 

C.J.  Woodin, 

1466.00 
Total  Resources, 11804.42 

Personal  Accounts,  payable:  Liabilities. 

H.  J.  Brown, —  . 

S.  G.  Hooker, 

940.00 
Bills  Payable: 

Note  of  2nd  inst.,  favor  of  M.  S.  Watson, 

"     *'   17th   "  "     M.S.Watson, 

■  6325.00 

Total  Liabilities, 7265.00 

Present  Worth, 4539.42 

Investment, 4030,00 

Amount  drawn, 100.00 

■  3930.00 

Ket  Gain, 609.42 


68  DOUBLE  ENTRY  BOOK-KEEPING. 

CHAJ^GEN'a  FROM  Sli^GLE  El^TRY  TO  DOUBLE  E^TRT". 

If  the  instructions  given  immediately  preceding  the  foregbing  statements  have  been 
followed,  your  Ledger  now  shows  your  present  worth  and  the  personal  accounts  of  the 
business.  It  is  presumed  that  you  have  already  learned  enough  of  Double  Entry  to  enable 
you  to  readily  see  what  this  Ledger  lacks  to  make  it  Double  Entry.  A  Single  Entry  Ledger 
contains  only  the  proprietor's  account  and  the  accounts  with  the  persons  with  whom  busi- 
ness is  being  done  on  credit;  while  at  such  a  period  of  the  business  as  this,  when  results  have 
been  shown,  the  Double  Entry  Ledger  should  exhibit  all  of  the  resources  and  liabilities. 
You  will,  therefore,  open  such  accounts  in  your  Ledger  at  this  time  as  are  necessary  to  make 
that  book  contain  everything  found  m  the  foregoing  Statement  of  Resources  and  Liabilities. 
5y  referring  to  that  statement  and  taking  the  items  as  they  there  appear,  you  will  find, 
Urst,  that  you  have  no  account  in  your  Ledger  to  represent  the  merchandise  which  you  have 
•on  hand.  You  will,  therefore,  open  an  account  with  Merchandise,  one-third  of  a  page 
below  the  last  account  in  your  Ledger,  and  enter  on  the  debit  side,  March  1,  Inventory^ 
5288.75.  You  will  next  open  an  account  with  Cash,  one-third  of  a  page  below  Merchand- 
ise, and  enter  on  the  debit  side,  March  1,  Balance,  SlJf0.50.  Give  all  other  accounts  one- 
fourth  of  a  page  space.  Next,  open  an  account  with  Real  Estate,  and  enter  on  the  debit 
side,  March  1,  Store  and  Lot,  1500.00.  Next,  open  an  account  with  Bills  Receivable,  and 
debit  it,  March  1,  Balance,  345.00.  Next,  opdn  an  account  with  Expense,  and  debit  it 
with  the  present  value  of  the  insurance  policy,  March  1,  Insurance,  6Jf..l7.  Next,  open  an 
account  with  Bills  Payable,  and  enter  on  the  credit  side,  March  1,  Balance,  6325.00. 

Your  Ledger  now  contains  a  record  of  all  of  your  property  and  debts,  and  your  present 
worth,  as  shown  by  your  statement  of  resources  and  liabilities ;  and  since  the  liabilities  of  the 
business  added  to  your  present  worth  —  all  of  which  are  on  the  credit  side  of  your  Ledger — 
are  equal  in  amount  to  the  sum  of  the  resources  of  the  business — which  appear  on  the  debit 
side  of  the  Ledger — it  will  be  clear  to  you  that  the  sides  of  the  Ledger  should  now  be  equal. 
To  be  certain  that  the  Ledger  is  in  balance,  you  will  now  make  a  trial  balance,  as  instructed 
on  page  63. 

QuESTiOiSrs. 

Page  G2. —  In  Double  Entry  why  should  the  sum  of  the  debit  side  of  the  Ledger  equal 
the  sum  of  the  credit  side?  "What  is  a  Trial  Balance?  Describe  the  manner  of  taking  a 
Trial  Balance?  Page  63. —  In  what  two  ways  may  the  net  gain  or  net  loss  of  a  business  be 
ascertained  ?  Describe  the  manner  of  determining  the  net  gain  or  net  loss  by  the  Double 
Entry  method.  How  may  the  net  gain  or  net  loss  on  Merchandise  be  determined  ?  What 
does  the  Expense  account  usually  show?  How  is  the  loss  on  Expense  ascertained  when  there 
is  an  Expense  inventory?  What  does  the  Interest  account  show  when  the  debit  side  is  the 
greater?  Page  65. —  Describe  the  manner  of  closing  the  Ledger  for  the  month  of  January. 
Pao-e  68. —  How  does  a  Single  Entry  Ledger  differ  from  a  Double  Entry  Ledger  ?  How 
would  you  change  a  Single  Entry  Ledger  to  Double  Entry?  Why  should  the  Ledger  be  in 
balance  after  these  steps  have  been  taken? 


DOUBLE  ENTRY  BOOK-KEEPING.  69 

SiXTEEi^TH  Exercise. 

The  entries  for  the  following  exercise  will  be  made  in  accordance  with  the  principles  of 
Double  'Entry,  and  you  will  use  the  Cash  Book,  Journal,  Bill  Book,  and  Ledger. 

The  series  of  transactions  which  constitutes  this  exercise  is  a  continuation  of  the  foregoing 
one.  It  is  customary  to  use  the  opposite  entry  in  the  Double  Entry  Cash  Book,  together 
with  such  an  explanation  of  the  transaction  as  is  deemed  necessary  to  make  the  record 
complete.  For  instance,  where  the  Journal  entry  is  "Cash,  To  Mdse.,"  you  would  enter 
on  the  left-hand  side  of  the  Cash  Book,  "Mdse."  and  the  neqessary  explanation.  The 
second  entry  in  the  exercise  —  the  first  entry  in  which  Cash  occurs  —  will  be,  "Cash,  To 
E.  L.  Marvin,"  and  your  entry  on  the  left-hand  side  of  the  Cash  Book  will  be,  "R.  L. 
Marvin.     In  full  of  account  to  Feb.  15th." 

March  1,   190-, 
Sold  P.  W.  Johnson  &  Co.,  on  account  at  15  days,  100  bbls.  Flour,  @  $6.50. 

2.  R.  L.  Marvin  has  paid  his  account,  which  was  due  on  the  1st  inst.,  in  cash. 

3.  P.  W.  Johnson  &  Co.  have  paid  cash  for  their  invoice  of  Feb.  16. 

4.  C.  J.  Woodin  has  paid  for  his  two  invoices  of  Feb.  20,  and  Feb.  22,  by  giving  his 

note,  with  interest,  at  30  days,  indorsed  by  J.  W.  Monroe,  and  payable  at  Ward  & 
Co.'s  Bank. 

"       Paid  my  note,  favor  M.  S.  Watson,  due  to-day,  in  cash, 

5.  Sold  Manley  &  Baker,  Avon,  on  account  at  30  days,  300  bush.  Oats,  @  52^;  225  bush. 

Corn,  @  75^;  75  bbls.  Flour,  @  $6.60. 

8.  Sold  C.  J.  Woodin,  on  account  at  ]0  days,  200  bush.  Oats,  @  52^;   100  bbls.  Flour, 

@  $6.65. 

9.  Paid  H.  J.  Brown,  for  invoice  of  Feb.  22,  in  cash. 

10.  Sold  Manley  &  Baker,  on  account  at  30  days,  75  bbls.  Flour,  @  $6.60;  250  bush.  Corn, 

@  76^. 

11.  D.  T.  Harris  has  paid  his  note  of  $345,  which  was  a  part  of  my  investment,  in  cash. 

12.  Paid  S.  G.  Hooker  for  my  purchase  of  Feb.  25,  in  cash. 

14.     Sold  Downing  &  Howard,  on  account  at  30  days,  150  bbls.  Flour,  @  $6.65. 

16.     P.  W.  Johnson  &  Co.  have  paid  cash  for  their  purchase  of  1st  inst. 

"      Bought  of  M.  S.  Watson,  on  my  note  at  30  days,  payable  at  First  National  Bank,  500 
bbls.  Flour,  @  $5.85. 

18.  C.  J.  Woodin  has  paid  cash  for  his  purchase  of  the  8th  inst. 

19.  Sold  J.  H.  (xilmore,  Jr.,  on  his  note  at  30  days,  payable  at  Second  National  Bank,  100 

bbls.  Flour,  @  $6.60. 

"       Paid  my  note,  favor  of  M.  S.  Watson,  due  to-day,  in  cash. 

21.     Sold  F.  H.  Case,  for  cash,  200  bbls.  Flour,  @  $6.50;  300  bush.  Corn,  @  72^. 

24.     Sold  C.  J.  Woodin,  on  account  at  10  days,  150  bbls.  Flour,  @  $6.65;  175  bush.  Oats, 
@  52^. 

26.     Sold  P.  W.  Johnson  &  Co.,  on  account  at  15  days,  125  bush.  Oats,  @  51^;  150  bush. 
Corn,  @  72^. 

"       Bought  of  H.  J.  Brown,  on  account  at  15  days,  800  bush.  Corn,  @  60^. 


70 


DOUBLE  ENTRY  BOOK-KEEPING. 


28.  Sold  Manley  &  Baker,  on  account  at  30  days,  50  bbls.  Flour,  @  $6. 

29.  Sold  C.  J.  Woodin,  on  account  at  10  days,  200  bush.  Corn,  @  70^. 

30.  Bought  of  S.  G.  Hooker,  on  account'at  15  days,  685  bush.  Oats,  @  40(^. 

31.  Sold  C.  G.  Cole,  100  bbls.  Flour,  @  $6.65.     He  paid  $300,  cash,  and  agreed  to  pay 

balance  April  15. 

There  are  two  ways  of  journalizing  the  foregoing  transaction.     One  is  ' 


Cash, 

C.  J.  Cole, 

To  Mdse., 
and  the  other  is  to  make  two  entries  of  it,  thus: 

C.  G.  Cole, 

To  Mdse., 

Cash, 

To  C.  G.  Cole, 


300.00 
335.00 


665.00 


665.00 


665.00 


800.00 


300.00 


The  latter  form  is  preferred;  as,  when  posted,  C.  G.  Cole's  account  will  show  hoth  the  amount  of  the 
purchase  and  the  amount  of  the  payment. 

You  will  now  balance  and  rule  up  the  Cash  Book,  bringing  the  balance  of  cash  down  or 
the  left-hand  side  of  the  Cash  Book,  "April  1,  Balance,  436.50"  Place  the  amount,  $436.50, 
in  the  right-hand  column ;  post  the  Journal  entries  ;  make  a  Trial  Balance  ;  a  Statement  of 
Losses  and  Gains;  a  Statement  of  Eesources  and  Liabilities;  close  those  accounts  in  your 
Ledger  which  show  gains  and  losses  into  Loss  and  Gain  account,  and  close  the  Loss  and  Gain 
account,  into  your  account,  bringing  down  your  present  worth,  and  the  inventories. 


TRIAL   BAIiANCE,  MARCH  31,   190-. 


Dr. 


Cr. 


Student, 

H.  J.  Brown, 

P.  W.  Johnson  &  Co., 

C.  J.  Woodin, 

S.  G.  Hooker, 

Merchandise, 

Cash, 

Eeal  Estate, 

Bills  Keceivable, 

Expense, — 

Bills  Payable, 

Manley  &  Baker, 

Downing  &  Howard, . 
C.  G.  Cole, 


4539 

1480 

1960 

2588 

75 

2417 

1228 

50 

274 

8967 

75 

8462 

7701 

50 

7265 

1500 

1490 

345 

64 

17 

6325 

9250 

1804 

75 

997 

50 

665 

300 

34812 

92 

34812 

42 


50 


92 


Inventory,  March  31,  190-, 

Merchandise:    125  bbls.  Flour,  @  $5.75;  775  bush.  Com,  @  QO^',  1035  bush.  Oats,  @ 
400;  total,  $1597.75. 

Real  Estate:    Store  and  Lot,  $1500;  Expense:  10  months  Insurance,  58.33;  total 
inventory,  $3156.08. 


DOUBLE  ENTRY  BOOK-KEEPING.  7l 

STATEMENT   OF  LOSSES  AND   GAINS. 
Merchandise: 

Sales,  shown  by  the  credit  side  of  Merchandise  account, 8462.50 

Inyentory, 1597. 75 

10060.25 
Cost,  shown  by  the  debit  side  of  Merchandise  account, , 8967. 75 

Gain, 1092.50 

Expense: 

Cost, 64.17 

Inventory, .-.       58.33 

Loss, 5.84 

Net  Gain, 1086.66 

STATEMENT   OF  RESOURCES  AND  LIABLLITLES. 

Resources. 

Inventory, 3156.08 

Cash  received, 7701.50 

''     paid, 7265.00 

"     onhand, 436.50 

Personal  Accounts,  receivable: 

P.  W.  Johnson  &  Co., 171.75 

C.  J.  Woodin, 1228.50 

Manley  &  Baker, 1804.75 

Downing  &  Howard, 997.50 

C.  G.  Cole, 365.00 

4567.60 

Bills  Receivable: 

Received, •. 1490.00 

Paid, ■ 345.00 

Onhand, .    1145.00 

Total  Resources,-.. 9306.08 

Personal  Accounts,  payable:  Liabilities. 

H.J.  Brown 480.00 

S.G.Hooker   274.00 

754.00 
Bills  Payable:  , 

Issued,  - 9250.00 

Paid, 6325.00 

Outstanding, 2925.00 

Total  Liabilities, 3679.00 

Present  Worth, 5626.08 

Investment, 4539.42 

Net  Gain, 1086.66 

Present  Worth, .  5626.08 


72 


DOUBLE  ENTRY  BOOKKEEPING. 


APRIL,    190-. 


1 

2 

2 

3 

3 

4 

8 

9 

11 

13 

15 

19 

21 

27 


Balance, 

Mdse., 

C.  J.  Woodin, 

Bills  Rec, 

Interest, 

Manley  &  Baker, 

C.  J.  Woodin, 

Manley  &  Baker 

P.  W.  Johnson  &  Co., 

Downing  &  Howard, 

C.  G.  Cole, 

C.  J.  Woodm, 

Bills  Eec, 

Manley  &  Baker, 


On  hand, 

Invoice  of  this  date. 

Bill  of  March  24, 

C.  J.  Woodin's  note,  per  B.  B,, 

On  above  note. 

Bill  of  March  5, 

Bill  of  March  29, 

"    "       "      10, 

"    "        "      26, 

Balance  of  Bill  of  March  31, 
Bill  of  the  9th  inst, 
J.  H.  Gilmore,  Jr.'snote,  perB.B., 
Bill  of  March  28, 


107 
1088 
485 
2 
819 
140 
685 
171 
997 
365 
168 
660 
300 


50 
50 

43 

75 


75 
50 


436 


5990 


6436 


50 


43 


93 


Seveistteei^th  Exercise. 

In  this  exercise  the  Cash  Book  will  be  kept  as  a  principal  book.  That  is,  the  cash 
entries  will  be  made  in  and  posted  from  the  Cash  Book,  and  omitted  from  the  Journal. 
This  is  done  to  save  labor.  Since  the  cash  entries  may  be  posted  directly  from  the  Cash 
Book  as  well  as  from  the  Journal,  it  will  be  apparent  that  entering  such  transactions  in  both 
the  Cash  Book  and  Journal  involves  double  labor,  and  the  accountant  should  adopt  every 
expedient  that  will  diminish  his  labor  and  simplify  his  methods,  being  certain,  at  the  same 
time,  that  his  records  are  full  and  cle^-r. 

The  cash  entries  will  be  made  in  the  Cash  Book  precisely  as  described  in  the  Sixteenth 
Exercise,  and  will  be  omitted  from  the  Journal.  This  Exercise  is  a  continuation  of  the 
preceding  one. 

April  1,    190-, 

Bought  of  M.  S.  "Watson,  on  my  note  at  30  days,  payable  at  the  First  National  Bank,  550 
bbls.  Flour,  @  $5.85. 

2.  Sold  for  cash  15  bbls.  Flour,  @  $6.40,  $96;  25  bush.  Oats,  @  46^,  $11.50;  total,  $107.50. 
{Enter  on  the  left-hand  side  of  the  Cash  Booh,  immediately  heloio  the  balance  brought 
down  from  last  month,  "^,"  ''Mdse.,"  "  Invoice  of  this  date,"  ''107.50."  Place  the 
amount,  107  60,  in  the  left-hand  column.     See  Cash  Booh  on  pages  72  and  73.) 

By  placing  the  above  amount  on  the  left-hand  side  of  the  Cash  Book,  cash  becomes  debited  as  it  would 
be  if  that  amount  were  placed  on  the  debit  side  of  the  Ledger,  as,  at  the  close  of  the  month  the  aggregate  of 
the  amounts  on  the  left-hand  side  of  the  Cash  Book,  less  the  balance  brought  down  from  last  month,  will  be 
posted  to  the  debit  side  of  the  Cash  account  in  the  Ledger.  The  aggregate  of  the  amounts  on  the  right-hand 
side  of  the  Cash  Book  will,  likewise,  be  posted  to  the  credit  side  of  the  Cash  account  in  the  Ledger,  causing 
that  account  to  show  the  entire  receipts  and  payments  of  cash,  but  requiring  only  one  entry  on  each  side. 

%  C.  J.  "Woodin  has  paid  for  his  purchase  of  March  24,  due  to-day,  in  cash,  $1088.50. 
{Enter  on  the  left-hand  side  of  the  Cash  Booh  "2,"  "C.  J.  Woodin,"  "Bill  of  March 
24,"  "1088.60.") 

No  Journal  entry  for  the  above  is  required,  as  C,  J.  Woodin  will  be  credited  in  the  Ledger  from  the 
Cash  Book,  when  the  entries  in  that  book  are  posted;  and,  as  before  explained,  cash  will  become  debited  for 
this  amount  in  the  aggregate  of  the  entries  on  the  left-hand  side  of  the  Cash  Book. 


DOUBLE  ENTRY  BOOK-KEEPING. 
APRIL,     190- 


73 


DATE. 

7 
11 
14 
18 

CHECK. 

Expense,                       Copying  Press,  Stationery,  etc., 

H.  J.  Brown,               Invoice  March  26, 

S.  G.  Hooker,                   "           "     30, 

Bills  Pay.,                    Note  favor  M.  S.Watson,  per  B.B., 

Balance,                       On  hand  (red  ink) 

14 

480 

274 

2925 

65 

3693 
2733 

31 

65 

2h 

6426 

93 

3.  C.  J.  Woodin  has  paid  his  note  of  $485,  due  to-day,  and  interest  on  same,  $2.43. 

{Enter  on  the  left-hand  side  of  the  Cash  Book,  "6,"  "•Bills  Receivable,'^  "  C.  J. 
Woodin's  note,  per  B.  B.,"  "4^5;"  and  on  the  next  line  below,  "6,"  '^ Interest,''  "On 
above  note,"  "2.43.") 

4.  Manley  &  Baker  have  paid  for  their  purchase  of  March  5,  due  to-day,  $819.75.     {Since 

this  transaction  is  similar  to  that  of  the  2nd,  the  same  directions  will  apjjly.) 

7.  Paid  cash  for  Copying  Press,  Office  Stationery,  etc.,  $14.65.     {Enter  on  the  right-hand 

side  of  the  Cash  Book,  "April  7,"  "Expense,"  "Copying  Press,  Stationery,  etc.,'* 
"U.65.") 

8.  C.  J.  Woodin  has  paid  cash  for  his  purchase  of  March  29,  $140. 

9.  Manley  &  Baker  have  paid  cash  for  their  purchase  of  March  10,  $685. 

"       Sold  C.  J.  Woodin,  on  account  at  10  days,  350  bush.  Oats,  @  48^,  $168.     {This  entry 

loill,  of  course,  be  made  in  the  Jonrnal,  as  there  is  no  cash  involved  in  if.) 
11.     P.  W.  Johnson  &  Co.  have  paid  cash  for  their  purchase  of  March  26,  $171.75. 
"       Paid  H.  J.  Brown,  cash  for  amount  of  my  purchase  of  March  26,  $480. 

13.  Downing  &  Howard  have  paid  cash  for  their  purchase  of  March  14,  $997.50. 

14.  Paid  S.  G.  Hooker  cash  for  my  purchase  of  March  30,  $274. 

"  Sold  Manley  &  Baker,  on  account  at  30  days,  175  bbls.  Flour,  @  $6.50,  $1137.50. 

15.  C  G.  Cole  has  paid  cash  for  the  balance  of  his  purchase  of  March  31,  $365. 
"  Paid  cash  for  my  note,  favor  of  M.  S.  Watson,  due  to-day,  $2925. 

16.  Sold  P.  W.  Johnson  &  Co.,  on  account  at  15  days,  125  bbls.  Flour,  @  $6.40,  $800; 

125  bush.  Oats,  @  48^,  $60;  total,  $860. 

18.  J.  H.  Gilmore,  Jr.,  has  paid  his  note,  due  to-day,  in  cash,  $660. 

19.  Sold  Downing  &  Howard,  on  account  at  30  days,  175  bbls.  Flour,  @  $6.40,  $1120. 
"       0.  J.  Woodin  has  paid  cash  for  the  amount  of  his  purchase  of  the  9th  inst.,  $168. 

21.     Bought  of  S.  G.  Hooker,  on  account  at  15  days,  500  bush.  Oats,  @  40^,  $200. 
23.     Sold  F.  W.  Miller,  on  his  note  at  60  days,  indorsed  by  D.  G.  Kockwell,  payable  at 
Second  National  Bank,  600  bush.  Corn,  @  72^. 


74  DOUBLE  ENTRY  BOOKKEEPING. 

25.  Bought  of  Lyman  Welch,  on  my  note  at  30  days,  payable  at  First  National  Bank,  600 

bbls.  Flonr,  @  15.75. 

26.  Sold  C.  J.  Woodin,  on  account  at  10  days,  125  bbls.  Flour,  @  $6.60. 

27.  Manley  &  Baker  have  paid  cash  for  their  purchase  of  March  28,  $300.  ' 

29.  Sold  C.  G.  Cole,  on  account  at  15  days,  150  bush.  Oats,  @  48^;  100  bush.  Com,  @  74</5. 

30.  Bought  of  H.  J.  Brown,  on  account  at  15  days,  1000  bush.  Corn,  @  60^. 

You  will  now  post  your  Journal  entries  to  the  Ledger;  balance  your  Cash  Book,  bringing 
the  balance  down  below  the  rulings,  as  heretofore  instructed,  and  post  the  entries  in  the 
Cash  Book  to  the  Ledger.  All  of  the  entries  on  the  left-hand  side  of  the  Cash  Book  will 
be  posted  to  the  credit  side  of  the  Ledger,  and  those  on  the  right-hand  side  of  the  Cash  Book 
to  the  debit  side  of  the  Ledger.  For  instance,  the  first  entry  on  the  left-hand  side  of  the 
Cash  Book,  below  the  balance  brought  down  from  last  months  is  "Mdse,,  107. SO,''  which  will 
be  posted  to  the  credit  side  of  Merchandise  account  in  the  Ledger,  using  the  date  of  the 
transaction  in  the  Cash  Book  and  "CasJi,"  for  explanation,  and  place  in  the  check  column,  in 
the  Ledger,  the  page  of  the  Cash  Book  from  which  the  entry  is  posted.  The  first  entry  on 
the  right-hand  side  of  the  Cash  Book  is  "Expense,  14-65,"  which  will  be  posted  to  the  debit 
side  of  Expense  account  in  the  Ledger,  using  the  date  of  the  entry  in  the  Cash  Book,  and 
"  Cash,"  for  explanation.  You  will  also  check  the  posted  entry  m  the  Cash  Book,  using 
the  page  of  the  Ledger  on  which  the  item  was  posted. 

The  footing  of  the  left-hand  column  on  the  left-hand  side  of  the  Cash  Book,  should  be 
posted  to  the  debit  side  of  the  Cash  account  in  the  Ledger,  dated  "April  30,"  and  with  "Cash 
Book,"  for  explanation,  and  the  footing  of  the  left-hand  column  on  the  right-hand  side 
of  the  Cash  Book  should  be  posted  to  the  credit  side  of  the  Cash  account  in  the  Ledger,  with 
the  same  date  and  explanation  as  the  debit. 

The  advantages  secured  by  keeping  the  Cash  Book  as  a  principal  book,  it  will  be  seen, 
lie  in  the  saving  of  a  Journal  entry  for  every  cash  transaction,  and  the  grouping  of  all 
debits  of  cash  in  the  footing  and  posting  them  in  one  amount,  and  the  credits  of  the  Cash 
Book  in  the  same  manner. 

You  will  now  make  a  statement  of  Losses  and  Gains  and  of  Resources  and  Liabilities. 
Then  close  the  accounts  in  your  Ledger  which  show  losses  or  gains  into  Loss  and  Gain 
account.  Next  close  the  Loss  and  Gain  account  into  your  own  account  and  balance  that 
account,  bringing  your  present  worth  below  the  rulings,  as  heretofore  instructed. 

Inventory,  April  30,  1  go- 
Merchandise.— 660  bbls.  Flour,  @  15.75;  1075  bush.  Corn,  @  60^;  885  bush.  Oats,  @ 
40^;  total,  $4794. 

Real  Estate. — Store  and  Lot,  $1500. 

Expense.  —  9  months  Insurance,  $52.50;  Copying  Press,  $10.     Total  inventory,  $6356.50. 

Resources.— Inventory,  $6356.50;  P.  W.  Johnson  &  Co.,  $860;  C.  J.  Woodin,  $825;  F. 
W.  Miller's  note,  $432;  Cash  on  hand,  per  Cash  Book,  $2733.28;  Manley  &  Baker, 
$1137.50;  Downing  &  Howard,  $1120;  C.  G.  Cole,  $146;  Total  resources,  $13610.28. 

Liabilities.— H.  J.  Brown,  $600;  S.  G.  Hooker,  $200;  Note  favor  M.  S.  Watson,  $3217.50; 
Note  favor  Lyman  Welch,  $3450;  Total  liabilities,  $7467.50;  Present  Worth,  $6142.78. 
Total  gains,  $527.18;  total  losses,  $10.48;  net  gain,  $516.70. 

Student's  net  investment,  $5626.08;  Net  Gain,  $516.70;  Student's  Present  Worth,  $6142.78. 


DOUBLE  ENTRY  BOOK-KEEPING.  .  75 


Eighteenth  Exercise. 

'  A  Draft  is  a  written  order  to  pay  a  certain  sum  of  money,  drawn  by  a  person,  firm  or 
corporation  upon  some  other  person,  firm  or  corporation,  in  favor  of  a  third  person,  firm 
or  corporation. 

"The  Parties  to  a  Draft  are  the  drawer  —  the  person  who  draws  the  draft;  the  drawee 
—  the  person  on  whom  the  draft  is  drawn;  and  the  payee — the  person  in  whose  favor  the 
draft  is  drawn. 

^  A  Sight  Draft  is  one  that  is  drawn  "at  sight,"  and  in  most  of  the  states  is  payable  on 
presentation. 

In  some  of  the  states,  however,  days  of  grace  are  allowed  on  sight  paper. 

*A  Time  Draft  is  one  that  is  drawn  at  a  specified  period  of  time  "after  sight,"  or 
"after  date,"  and  must  be  "accepted"  by  the  drawee  to  possess  any  value. 

■^The  Drawee  Accepts  the  Draft  by  writing  across  the  face  of  it  "accepted,"  with 
the  date,  if  it  be  drawn  "after  sight,"  and  his  name;  and  the  draft  will  become  due  the 
specified  time  after  the  date  of  the  acceptance,  adding  three  days  of  grace.  'If  the  draft 
be  drawn  a  specified,  time  "after  date,"  the  drawer  need  not  date  the  acceptance,  as  the 
draft  will  fall  due  the  specified  time  after  its  date,  adding  three  days  of  grace. 

'  Days  of  Grace.  Negotiable  promissory  notes  or  bills  of  exchange  (drafts),  payable 
a  certain  time  after  date  or  after  acceptance,  are  entitled  in  some  states  to  three  days  delay 
beyond  the  time  expressed,  unless  "without  grace"  is  specified  on  the  paper.  These  addi- 
tional days  are  called  ' '  days  of  grace."     Days  of  grace  are  not  allowed  in  this  work. 

*The  Object  of  the  Draft  is  to  remove  the  necessity  of  incurring  the  expense  and  risk 
of  shipping  money.  For  instance  :  Suppose  that  John  Wilson  &  Co.,  of  Chicago,  owe  F. 
W.  Graves,  of  New  York,  one  thousand  dollars,  and  that  F.  W.  Graves  owes  T.  H.  Darrow, 
of  Chicago,  one  thousand  dollars;  if  F.  W.  Graves  draws  a  draft  on  John  Wilson  &  Co.  for 
their  indebtedness  to  him,  in  favor  of  T.  H.  Darrow,  and  the  draft  be  paid,  the  three  debts 
will  have  been  discharged,  and  not  a  dollar  of  money  have  passed  between  those  cities.  {See 
Form  1,  Sight  Draft,  on  next  page. ) 

*  There  are  two  ways  in  which  the  draft  is  commonly  employed;  one  is  in  paying  debts 
due  at  a  distance,  and  the  other  is  in  collecting  bills  due  from  people  residing  at  a  distance. 
In  paying  debts  due  abroad  a  bank  draft  is  usually  employed,  and  in  collecting  debts  at 
remote  points  an  individual  draft  is  drawn. 

"  A  Bank  Draft  is  a  written  order  to  pay  a  specified  sum  of  money,  drawn  upon  one 
bank  by  another  with  which  it  has  funds  on  deposit,  made  payable  to  the  purchaser,  or  to 
whoever  the  purchaser  may  wish.  "  Bank  drafts  are  usually  drawn  "at  sight ;"  that  is,  are 
made  payable  on  presentation,  and  pass  current,  with  proper  indorsement,  as  readily  as  the 
actual  money. 

"  An  Individual  Draft  is  a  written  order  drawn  by  one  person  or  firm  upon  another 
p_erson  or  firm.  For  instance  :  If  John  Warren,  of  Springfield,  owes  Wm.  Simpson,  of 
Bethany,  one  hundred  dollars,  Simpson  may,  if  the  account  be  due,  draw  upon  Warren  for 
the  amount,  and  leave  the  draft  with  a  bank  in  Bethany  for  collection.  The  bank  in 
Bethany  will  mail  the  draft  to  a  bank  in  Springfield,  which  will  present  it  to  Warren  for 
payment.  If  the  draft  be  paid,  the  bank  in  Springfield  will  so  notify  the  bank  in  Bethany, 
either  by  remittance  or  otherwise,  when  that  bank  will  pay  over  to  Simpson  the  sum  collected, 
less  a  small  fee  for  collecting  it.  Thus  the  debt  will  be  discharged  and  no  money  be  trans- 
ferred.    {See  Form  2,  Sight  Draft,  on  next  page.) 


76  DOUBLE  ENTRY  BOOK  KEEPING. 

Form  1. — sight  draft. 

$1000^  JTe-uj  YotTo,  jlp-ril  ^,  190- 

■fit  sight,  pay  to  fhe  oTdcT  of  Q^.  H.   (^cuttoiv, 

One    QJhoiLscLnci    (^oTlarrs^   uaZ'Lbe    Teoeiued,    cund    oTiarge   to 

my  cuooount. 

F.    ®.   G-TOAjes. 

Q.6  John   ^ilson  ^  Co., 

Chicago,  lU. 

Form  2. — individual  draft. 

$100^  ^ethouny,  J^,  J.,  fipriZ  8,  190-. 

fit  sight,  pay  to  the  FzTst  JVational  ^anlc  of 

^ethany,   J\/.   J.,    ot    oTde-r,    One    Hzindred    (^ollar-s,    and 

ohaTge  to  my  aoooibnt. 

^)m.   Simpson. 

Qo  John   ^^a-rren, 

BprzngfieLd,    O. 

Form  3. — accepted  draft. 


BA'^O^  ,  Geneva,  JST.  Y.,  July  9,  190-. 

%    ^    fit   szjoty    days'   sight,  pay   to   the   o-rdeT   of 
John  IIill?^c^,^7-.,  FozLT  HuundTed  Beuenty  and  -joo  (^olla-rs, 

ualiMe  reo^iifec^  and  ohaTge  to  ourr  aoooubnt. 

t   I    "" 

^1*  ^7?^.   i^.  ^aoon  <^  Co. 

Qo  O.  fi.  (^lurand, 

Qolwribiis,  Ji^isa. 


DOUBLE  ENTRY  BOOK-KEEPING.  77 

Several  drafts  will  appear  in  the  following  exercise,  the  necessary  explanations  for  which  will  accompany 
the  transactions  in  which  they  occur.  The  work  of  this  set  is  a  continuation  of  the  Seventeenth  Exercise,  and 
the  books  will  be  kept  by  Double  Entry.    The  Cash  Book  will  be  continued  as  a  principal  book. 

May  1,  190-. 
Sold  Downing  &  Howard,  on  account  at  30  days,  75  bbls.  Flour,  @  $6.65. 
1.     Paid  my  note  favor  of  M.  S.  Watson,  due  to-day,  in  cash,  $3217.50. 
■■i.     Paid  cash  for  repairs  on  store,  19.87. 
3.     Sold  for  cash,  18  bush,  oats,  @  50^;  30  bush.  Corn,  @  750. 

5.  Sold  Downing  &  Howard,  on  account  at  30  days,  100  bbls.  Flour,  @  $6.60;   75  bush. 

Oats,  @  50^'. 

6.  P.  W.  Johnson  &  Co.  neglected  to  pay  their  bill  due  on  the  1st  inst.,  $860,  and  I  drew 

upon  them  on  the  4th  at  10  days'  sight.     They  have,  returned  the  draft  accepted, 
payaTjle  at  Traders  Bank.     The  acceptance  is  dated  May  5. 

Your  entry  for  the  above  will  be. 

Bills  Receivable,  860.00 

To  P.  W.  Johnson  &  Co.,  accepted  my  draft,  as  per  B.  B.,  "  860.00 

In  the  Bill  Book,  you  will  be  the  drawer,  P.  "W.  Johnson  «&  Co.  the  maker,  and  it  will  be  in  your  favor. 

You  will  write  out  the  foregoing  draft  on  blank  paper,  and  submit  it  to  the  teacher  for  examination. 

(See  Form  3,  Accepted  Draft,  page  76.)    By  accepting  this  draft,  P.  W.  Johnson  &  Co.  have  promised  to  pay 

it  thirteen  days  after  May  5.     It  is  now  as  much  a  Bills  Receivable  as  though  it  were  P.  "W,  Johnson  & 

Co.'s  note  at  ten  days  in  your  favor,  and  should  be  entered  in  the  Bill  Book. 

6.     C.  J.  Woodin  has  paid  cash  for  his  purchase  of  April  26,  due  to-day. 
"       Paid  S.  G.  Hooker,  cash  for  my  purchase  of  April  21. 

8.     Sold  P.  W.  Johnson  &  Co.,  on  account  at  15  days,  125  bbls.  Flour,  @  $6.65. 
9      Sold  D.  L.  Mason,  on  his  note  at  30  days,  imjahle  at  Second  National  Bank,  75  bbls. 
Flour,  @  $6.65;  100  bush.  Corn,  @  72^. 

10.     H.  J.  Brown  has  drawn  on  me  at  10  days'  sight,  for  the  amount  of  my  purchase  of 
April  30,  $600,  Avhich  I  have  accepted,  payable  at  First  National  Bank. 

You  will  draw  up  the  above  draft,  accept  it,  and  submit  it  to  the  teacher  for  examination.  It  should, 
of  course,  be  entered  in  the  Bill  Book,     The  Journal  entry  will  be, 

H.  J.  Brown,  600.00 

To  Bills  Payable,  accepted  his  draft,  as  per  B.  B.,  600.00 

12.     Sold  Downing  &  Howard,  on  account  at  30  days,  200  bush.  Corn,  @  740. 

14.     0.  G.  Cole  has  given  me  his  draft,  in  full  of  his  purchase  of  April  29,  dated  to-day,  at 

10  days'  sight,  on  W.  D.  Howell  &  Co.,  which  they  have  this  day  accepted,  payable 

at  First  National  Bank.     Amount  of  draft,  $146. 

You  will  draw  up  the  above  draft  and  present  it  to  the  teacher  for  examination.  The  form  of  the 
acceptance  will  be 

^Goepied,  J\£a.z/  ±4,   190-, 

(PcLycbhle  cub 

'Fvrst  JTcutional  ^curCh. 

W.  @.  Ho-uuell  <f  Go. 

When  a  bank  account  is  kept,  it  is  usual  to  make  all  bills  payable  at  the  bank,  then  when  they  mature,  if 
there  is  sufficient  funds  in  the  bank  to  meet  them,  they  will  be  paid  by  the  bank  and  charged  to  the  maker's 
account  as  if  they  were  checks.     Your  entry  for  the  above  transaction  will  be. 

Bills  Receivable,  146.00 

To  C.  G.  Cole,  his  draft  on  W.  D.  Howell  «fc  Co.,  per  B.  B.,  146.00 


78  DOUBLE  ENTRY  BOOK-KEEPING. 

15  Sold  C.  J.  Woodin,  on  account  at  30  days,  50  bbls.  Flour,  @  $6.70;  125  bush.  Corn, 
@  72{#. 

"       P.  W.  Johnson  &  Co.  iiave  paid  their  acceptance,  due  to-day,  in  cash,  $860. 

16.     Sold,  for  cash,  25  bbls.  Flour,  @  16.60;  50  bush.  Corn,  @  12<p. 

19.     Downing  &  Howard  have  paid  cash  for  their  purchase  of  April  19,  $1120. 

30.  Drew  on  Manley  &  Baker,  Avon,  on  the  15th  inst.,  at  fifteen  days'  sight,  for  the  amount 
of  their  purchase  of  April  14,  which  should  have  been  paid  on  the  14th  inst.,  and 
they  have  returned  it  accepted,  payable  at  Traders  Bank.  The  acceptance  is  dated 
May  17. 

"       Paid  my  acceptance  due  to-day. 

You  should  be  careful  to  mark  all  bills  "  Paid  "  in  tlie  Bill  Book  at  the  time  they  are  paid. 

21.  P.  W.  Johnson  &  Co.  have  given  me  their  note,  at  30  days,  indorsed  by  L.  W.  Lewis, 

payable  at  Traders  Bank,  in  settlement  for  their  purchase  of  May  8,  $831.25. 

22.  Sold  Manley  &  Baker,  on  account  at  30  days,  200  bbls.  Flour,  @  $6.65. 

24.  Bought  of  Lyman  Welch,  on  my  note  at  30  days,  payable  at  First  National  Bank,  500 
bbls.  Flour,  @  $5.75. 

"  Eeceived  cash  for  an  acceptance  due  to-day. 

26.  Bought  of  S.  G.  Hooker,  on  account  at  45  days,  525  bush.  Oats,  @  40^. 

28.  Bought  of  H.  J.  Brown,  on  account  at  15  days,  500  bush.  Corn,  @  60{#. 

29.  Sold  C.  G.  Cole,  on  account  at  15  days,  600  bush.  Corn,  @  72^. 

31=  Sold  D.  L.  Jackson,  on  his  note  at  60  days,  indorsed  by  Moody  &  Lord,  and  payable  at 
Traders  Bank,  120  bbls.  Flour,  @  $6.60;  200  bush.  Corn,  @  71{/^;  250  bush.  Oats, 
@  48^. 

You  will  now  balance  and  rule  up  your  Cash  Book,  bringing  the  balance  of  cash  down 
below  the  rulings  on  the  left-hand  side;  post  your  Journal  and  Cash  Book  entries  to  the 
Ledger;  make  a  Trial  Balance;  a  Statement  of  Losses  and  Gains,  and  of  Resources  and 
Liabilities;  and  close  your  Ledger,  making  your  account  show  your  Present  Worth. 

Inventory,  May  31,  190-. 

Meechandise.— 390  bbls.  Flour,  @  $5.75;  270  bush.  Com,  @  60?5;  1067  bush.  Oats, 
@  40^;  total,  $2831.30. 

Real  Estate. — Store  and  Lot,  $1500. 

Expense. — Insurance,  $46.67;  Copying  Press,  $10.     Total  inventory,  $4387.97. 

Resources.— Inventory,  $4387.97;  C.  J.  Woodin,  $425;  Manley,  &  Baker,  $1330;  Downing 

&  Howard,  $1344.25;   C.  G.  Cole,  $432;   F.  W.  Miller's  note,  $432;   D.  L.  Mason's 

note,  $570.75;  Manley  &  Baker's  note,  $1137.50;  P.  W.  Johnson  &  Co. 's  note,  $831.25; 

^  D.  L.  Jackson's  note,  $1054;  Cash  on  hand,  per  Cash  Book,  $1889.41;  total  resources, 

$13834.13. 

Liabilities. — H.  J.  Brown,  $300;  S.  G.  Hooker,  $210;  Note  favor  Lyman  Welch,  given 
April  25,  $3450 ;  Note  favor  Lyman  Welch,  given  May  24,  $2875 ;  total  liabilities, 
$6835 ;  Present  Worth,  $6999.13. 

Total  gains,  $872.05  ;  total  losses,  $15.70  ;  net  gain,  $856.35. 

Student's  net  investment,  $6142.78  ;  Net  Gam,  $856.35  ;  Student's  Present  Worth,  $6999.13. 


double  entry  book-keeping  79 

REYIEW    QUESTI0]!^S. 

SiKGLE  Entry. — What  is  Book-keeping  ?  What  is  the  object  of  keeping  books?  How 
many  methods  of  book-keeping  are  there  in  general  use  ?  What  are  they  called  ?  What 
accounts  are  kept  in  the  Ledger  in  Single  Entry?  What  in  Double  Entry?  Upon  what  do 
the  books  to  be  used  in  a  business  depend  ?  What  are  the  main  books  usually  employed  ? 
What  other  books  are  sometimes  used  ?  What  does  the  Cash  Book  contain  ?  What  will  the 
difference  between  the  sum  of  the  receipts  and  payments  of  cash  show  at  any  time  ?  What 
does  the  Journal  contain?  How  much  explanation  of  the  transaction  should  accompany  the 
Journal  entry?  Describe  three  ways  by  which  this  may  be  done.  What  does  the  Bill  Book 
contain  ?  What  are  these  obligations  called  ?  What  does  the  Ledger  contain  ?  What  is 
an  account  ?  What  is  meant  by  posting  ?  What  is  meant  by  the  term  debit  ?  What  by 
the  term  credit  ?  What  is  a  Eesource  ?  What  is  a  Liability  ?  What  is  meant  by  the  term 
Investment?  Of  what  may  it  consist?  Define  Present  Worth.  If  the  sum  of  the  resources 
exceeds  the  sum  of  the  liabilities,  what  does  the  difference  show  ?  When  is  the  proprietor 
said  to  be  insolvent  ?  What  is  meant  by  Net  Gain  ?  By  Net  Loss  ?  To  what  is  the  term 
cash  applied  ?  What  is  meant  by  the  term  Bills  Keceivable  ?  What  by  the  term  Bills  Pay- 
able? For  what  is  the  proprietor  credited  ?  For  what  debited  ?  When  are  persons  debited? 
When  credited  ?  When  is  cash  debited  ?  When  credited  ?  When,  where,  and  how  are  Bills 
Eeceivable  entered  ?  What  record  is  made  of  Bills  Payable  when  they  are  issued  ?  How 
many  methods  of  keeping  a  Cash  Book  are  there  ?  Describe  each  method.  Describe  the 
manner  of  "  balancing"  a  Cash  Book  in  which  opposite  pages  are  used  for  the  receipts  and 
payments.  What  colored  ink  should  be  used  for  rulings?  Give  the  General  Rules  for  Single 
Entry  Book-keeping.  What  is  a  Single  Entry  Ledger  designed  to  contain  ?  By  its  use, 
what  is  the^proprietor  enabled  to  know?  When  a  purchase  is  partly  paid  for  at  the  time  it  is 
made,  what  entries  are  usually  made  ?  What  other  form  of  entry  might  be  made  ?  Would 
there  be  any  difference  in  the  result  by  either  plan  ?  Why  is  the  first  form  preferred  ?  How 
is  the  posting  done  ?  When  should  an  account  in  the  Ledger  be  footed  and  ruled  up  ? 
Explain  the  process  of  ruling  and  footing  an  account  in  which  there  are  several  entries  ? 
How  is  an  account  closed  in  which  there  is  but  one  entry  on  each  side  ?  How  may  the 
Present  Worth  of  a  business  be  ascertained  ?  How  may  the  Net  Gain  or  Net  Loss  be  found? 
Of  what  do  the  Resources  of  a  business  consist  ?  Of  what  do  the  LiabiUties  consist  ?  What 
is  an  Inventory?  How  is  property  on  hand  usually  estimated  at  the  time  of  taking  inventory? 
How  can  the  proprietor's  account  be  made  to  show  his  present  interest  in  the  business  ? 
How  frequently  are  statements  of  resources  and  liabilities  made  in  business  ? 

Double  Entry. — What  must  be  represented  in  a  Double  Entry  Ledger  ?  What  use  is 
made  of  the  Day  Book  ?  When  should  the  record  be  made  in  this  book  ?  Why  ?  How 
generally  is  this  book  used  ?  When  this  book  is  not  employed  where  are  the  entries  for 
transactions  made  ?  How  fully  are  the  entries  explained  ?  What  is  said  of  recording  every 
transaction  ?  What  is  the  Sales  Book  designed  to  contain  ?  The  Invoice  Book  ?  What 
other  form  of  Sales  Book  is  sometimes  kept?  What  other  form  of  Invoice  Book?  When  is 
the  Proprietor  credited  ?  When  debited  ?  When  are  Persons  debited  ?  When  credited  ? 
When  is  Cash  debited  ?  When  credited  ?  For  what  is  Bills  Receivable  account  debited  ? 
For  what  credited  ?  For  what  is  Bills  Payable  account  credited  ?  For  what  debited  ?  For 
what  is  Merchandise  debited?  For  what  credited?  For  what  is  Expense  debited?  For  what 
credited  ?  When  is  Interest  debited  ?  When  credited  ?  In  Double  Entry  why  should  the 
sum  of  the  debit  side  of  the  Ledger  equal  the  sum  of  the  credit  side  ?  What  is  a  Trial 
Balance  ?  In  what  two  ways  may  the  Net  Gain  or  Net  Loss  of  a  business  be  ascertained  ? 
Describe  the  manner  of  determining  the  Net  Gain  or  Net  Loss  by  the  Double  Entry  method  ? 
How  may  the  gain  or  loss  on  Merchandise  be  determined  ?  What  does  the  Expense  account 
usually  show?    How  is  the  loss  on  Expense  ascertained  when  there  is  an  Expense  inventory? 


80 


DOUBLE  ENTRY  BOOK-KEEPING. 


What  does  the  Interest  account  show  when  the  debit  side  is  the  greater  ?  Describe  the 
manner  of  closing  the  Ledger  for  the  month  of  January.  How  does  a  Single  Entry  Ledger 
differ  from  a  Double  Entry  Ledger  ?  How  would  you  change  a  Single  Entry  Ledger  to 
Double  Entry?  Why  should  the  Ledger  be  in  balance  after  these  steps  have  been  taken  ? 
What  IS  a  draft  ?  What  are  the  parties  to  a  draft  called  ?  What  is  a  sight  draft  ?  A  time 
draft?  How  is  a  draft  accepted?  What  are  days  of  grace?  What  is  the  object  of  the  draft? 
How  many  ways,  and  what  are  they,  in  which  the  draft  is  commonly  employed  ?  What  is  a 
bank  draft?  How  are  bank  drafts  usually  drawn?  In  what  respects  does  a  bank  draft  differ 
from  an  individual  draft  ? 


ABBRETIATIOjSTS  AI^D   COiSTTRACTIOlSrS. 


a.  or  @  (L.  ad.).     To  or  at. 

A  1.     First  Class. 

Ace,  Acct.,  or  <^c     Accoxint. 

Amt.     Amount. 

Apr.     April. 

Aug.     August. 

Bal.     Balance. 

B     Billed. 

B.  B.     Bill  Book 

Bbl.  or  bi'l.     Barrel,  Barrels. 
Bk.     Bank;  Book. 
Bills  Bee.    Bills  Receivable. 
Bills  Pay.     Bills  Payable. 

^    BUI  of  Lading. 

Bot.     Bought. 
Bu.  or  busli.     Bushel. 
Bx.     Box  or  Boxes. 
e.  or  ^.     Cents. 
D.  B.     Day  Book. 

C.  B.     Cash  Book 

Co.     Company;  County. 

C.  0.  D     Cash  (or  Collect)  on  Delivery. 

Or.     Credit. 

Gt.  or  cl     Cent. — (L.  Centum).     A  hundred 

Das.    Days. 

Dee.     December. 

Dep.     Deposited. 

Dft.  or  dft.     Draft,  Defendant. 

Disct.     Discount. 

Do.  or  do.    {It.  Ditto.)    The  same. 

Dr.    Debtor;  Doctor. 

ea.     Each. 

Exch.     Exchange. 

Feb.     February. 

F.  0.  B.     Free  on  Board. 

FrH.    Freight. 

Qal.  or  gal.     Gallon;  Gallons. 

EM.  or  hlid.     Hogshead. 

/.  B.    Invoice  Book. 

Ins.     Insurance. 


inst.     Instant, —  in  the  present  month. 

Int.  or  int.     Interest. 

Inv.     Invoice. 

Inv't.     Inventory. 

Jan.     January. 

X.,  ZJ.,  or  ft      (L.  Libra.)    A  pound,  in  weight 

Led.    Ledger. 

L.  F.     Ledger  Folio. 

Mar.     March;  Maritime.  ' 

Mdse.    Merchandise. 

Mo.  or  mo      Month. 

Mon.    Monday. 

No.  or  %     (L.  Numero.)    Number. 

Nov.    November. 

0.  B.     Order  Book 

%.    Per  cent. " 

Oct.     October. 

Oz.  or  oz.     Ounce  or  ounces. 

Payt.    Payment. 

Pd.    Paid. 

Per  cent  ,  per  cent.,   Per  ct.,  or  per  et     (L.  Pe? 

centum.)    By  the  hundred 
Pkg.     Package. 
Pr.,pr.,OT  1^.     {Ij.per.    By. 
Pes.    Pieces. 
Reed.     Received. 
R.  R.     Railroad 
$      Dollar;  Dollars. 
Sat.     Saturday, 
8  B.     Sales  Book. 
Sep  or  Sept.     September. 
Sunds.     Sundries. 
Tliurs.     Thui-sday. 
Ult.,  ult.,  or  ulto     (L.  ultimo.)    Last,  or  of  the 

last  month 
Viz.  or  viz.    (L.  videlicet.)    Namely;  To  wit. 
Wed.     Wednesday. 
Wt.  or  wt     Weight. 
Yd.  or  yd.     Yard. 
Tr     Year. 


APPENDIX. 


Busi:n"ess  Practice. 

Object. — '  This  exercise  is  designed  to  give  the  student  practice  in  drawing  business 
papers,  handling  money,  and  making  records  in  connection  with  business  transactions.  *  It 
is  also  designed  to  illustrate  some  of  the  labor  saving  methods  of  book-keeping  now  in  use 
among  business  men. 

Plan. — "  The  exercise  may  be  worked  with  or  without  offices,  at  the  discretion  of  the 
teacher.  ■•  Where  offices  are  not  provided,  the  teacher,  or  some  one  appointed  by  him,  wil) 
represent  the  other  parties  to  the  transactions,  receiving'  the  money,  papers,  etc.,  of  the 
business  practice  students,  and  examining  them  with  reference  to  accuracy  in  computation, 
correctness  of  form,  etc.  '  The  directions  for  performing  the  work  given  in  connection  with 
the  memoranda,  are  based  upon  the  plan  of  not  using  offices.  These  directions  are  full  an(^ 
explicit,  and  the  student  should  have  no  difficulty  iu  performing  the  work  correctly  and 
understaudingly. 

Offices. — '  Where  the  circumstances  will  admit,  the  value  of  the  work  will  be  consider^ 
ably  increased  by  establishing  at  least  three  offices,  viz.:  (1)  School  Bank,  (2)  Wholesale 
House,  (3)  Eetail  House.  ''At  the  first,  all  banking  business  will  be  done;  *of  the  second, 
all  goods  will  be  bought;  and  '  to  the  third,  all  goods  will  be  sold.  It  should  not  be  under- 
stood that  expensive  furniture  is  necessary  for  these  offices,  as  common  deal  tables  or  ordinary 
school  desks,  arranged  as  shown  in  the  following  diagram,  will  serve  the  purpose  admirably. 

Diagram  of  School  Eoom, 
Showing  arrangement  of  Business  Practice  Offices. 


Teachek. 

Retail.                       Bank. 

^ 

"Wholesale. 

Or,  if  a  simpler  plan  be  desired,  three  desks  in  the  front  row  of  the  school-room  may  be 
used  to  represent  offices.  "  Books  may  or  may  not  be  used  in  these  offices,  at  the  discretion 
of  the  teacher. 


BUSIJ^ESS  PRACTICE. 

CASH   RECEIPTS. 


DATK. 

r,.  F. 

MDSE. 

GENERAL. 

190-/ 

June  1 

Balance, 

On  hand, 

2700 

v/ 

Mdse., 

C.  W.  Dale  &  Co.,            S.  B.  14 

12 

50 

15 

Geo.  P.  King, 

On  acct.. 

50 

75 

2 

v 

Mdse., 

W.  C.  Green,                     S.  B.  15 

58 

60 

e;o 

Bills  Rec, 

Troup  &  Co.'s  note,  j|  169, 

500 

3 

V 

Mdse., 

Geo.  W.  Beech,                 S.  B.  17 

28 

12 

63 

Bills  Payable, 

Our  30-da.  note  discounted, 

5000 

4 

n/ 

Mdse., 

Mdse.  Sales  per  sales  drawer. 

14 

80 

13 

Martin  Bros., 

In  full  Inv.  1st.  inst. 

128 

50 

6 

18 

Mdse., 
Mdse., 

Cook  &  Co.,                       S.  B.  20 
Total  for  week. 

54 

80 

168 

168 

82 

82 

8548 

07 

June  6 

Balance, 

On  hand. 

7537 

59 

Complete  directions  for  establishing  and  operating  the  offices,  together  with  explanations 
of  the  books  that  may  be  used,  the  duties  of  the  clerks,  etc.,  are  given  in  the  Teacher's 
Key  to  this  book. 

Writing  Business  Forms. — "  The  student  will  derive  benefit  from  this  work  Just  in 
proportion  as  he  exercises  care  in  the  preparation  of  the  various  business  papers,  and  in 
making  the  records  upon  his  books.  "  Particular  attention  should  be  given  to  penmanship, 
spelling,  use  of  capitals,  neatness  and  general  arrangement.  "The  computations  should, 
of  course,  be  absolutely  correct. 

Books  to  be  Used. — "The  books  to  be  used  in  this  set  are  Journal,  Ledger,  Bill 
Book,  Trial  Balance  Book,  Sales  Book,  Check  Book,  and  Cash  Book.  The  special  books 
introduced,  are  Sales  Book,  Cash  Book,  and  Check  Book.  (For  illustrations  and  explana- 
tions of  these  books,  see  pages  ii,  iii,  and  v.)  "The  Ledger,  Bill  Book,  and  Trial  Balance 
Book  are  used  the  same  as  heretofore.  "  The  Journal  is  used  for  such  entries  as  do  not 
properly  belong  in  the  Cash  Book  and  Sales  Book. 

"The  Sales  Book  is  used  exclusively  for  a  record  of  the  sales  of  merchandise,  whether 
made  on  account  or  for  cash.  "  The  book  is  provided  with  two  money  columns,  "  one  for 
extensions  and  for  the  footings  of  cash  sales,  and  ^'the  other  for  the  footings  of  time  sales. 
{See  form  of  Sales  Book,  page  v.)  "  Cash  sales  are  marked  **  Paid  "  in  the  Sales  Book,  and 
an  entry  is  made  for  each  cash  sale  in  the  Cash  Book,  the  amount  being  extended  into  the 
special  Merchandise  column.  {See  form  of  Gash  Book,  page  ii.)  "'Sales  on  account,  or 
time  sales,  are  posted  direct  from  the  Sales  Book  to  the  Ledger,  each  purchaser  being  debited 
for  the  amount  of  his  purchase,  and  "^  the  footing  of  these  time  sales  is  posted  to  the  credit 
of  Merchandise  account  at  the  end  of  the  week  or  month.  {See  form  of  Sales  Book,  page 
V.)  "Posting  the  footing  of  the  Sales  Book  to  the  credit  of  Mdse.  instead  of  the  amount 
of  each  invoice,  is  one  of  the  labor  saving  features  of  this  set. 

"  The  Cash  Book  here  used,  is  provided  with  two  money  columns  on  each  page,  the 
same  as  were  the  cash  books  used  in  the  preceding  sets;  but  "one  of  these  columns  on 
each  page  is  used  for  a  special  purpose,  and  hence  is  called  a  special  column.  '^  The  one  on 
the  Ipft-hand  page  is  used  to  record  daily  cash  sales  of  merchandise,  and  '"the  one  on  the 
right-hand  page,  for  cash  expense  items.     {See  form  of  Ca^h  Book,  pages  ii,  and  iii.) 


BUSINESS  PRACTICE. 


Ill 


CASH   PAYMENTS. 


DATE.       Ij.  F. 


190-. 

June  1 

^/ 

Expense, 

Pens  50^,  Ink  25^,  Pencils  40^, 

1 

15 

s'l 

M.  W.  DoAve  &  Co., 

In  full  of  acct.. 

150 

08 

o 

v/ 

Expense, 

2  tons  Coal, 

9 

50 

6^3 

Bills  Payable, 

Our  H  415  paid  at  bank, 

600 

3 

18 

Discount, 

On  our  30-da.  note  of  $5000, 

25 

00 

48 

Perrin  &  Cook, 

In  full  Inv.  10th  ult.. 

180 

75 

4 

^/ 

Expense, 

Cleaning  office. 

2 

50 

59 

Furniture  &  Fixts., 

Bill  office  desks. 

18 

50 

5 

v/ 

40 

Expense, 
Expense, 

Salaries  for  week. 
Total  for  week. 

In  hank,            $7500.00 

20 

50 

65 

33 

33 

65 

1007 

98 

Balance, 

In  safe,                  41.09 

76^ 

09 

8548 

07 

"  By  the  use  of  special  columns,  fewer  entries  are  made  in  the  Ledger  than  by  the  other 
method,  thereby  saving  time  and  space.  '"  At  the  end  of  the  week  or  month,  these  special 
columns  are  footed,  and  the  footings  are  extended  into  the  general  columns.  "  The  items 
which  appear  in  the  general  columns  are  posted  daily;  "those  in  the  special  columns  are 
not  posted  separately,  but  at  the  end  of  the  week  or  month  the  total  amount  is  posted. 
'^  The  check-mark  ( y/ )  is  placed  in  the  folio  column  opposite  each  special  column  item,  to 
show  that  it  is  not  to  be  posted.  "  The  Ledger  page  is  used  as  a  check-mark  for  all  other 
items.  {See  form  of  Cash  Booh,  pages  ii,  and  iii.)  ^*  This  Cash  Book  is  balanced  the  same 
as  were  the  ones  used  heretofore,  excepting  that  the  cash  on  hand  is  itemized.  {See  form  of 
Cash  Book,  page  iii.) 

'*  The  Check  Book  used  in  this  set  is  the  same  in  form  as  the  one  illustrated  on  page 
55.  {See  page  65.)  "The  bank  account  is  kept  on  the  stub  of  this  book  instead  of  in  the 
Ledger  as  was  the  case  in  the  fifteenth  exercise.  {See  note  top  of  page  50. )  ^*When  a  deposit 
is  made,  it  is  added  to  the  amount  in  the  bank  and  ^*  when  a  check  is  drawn  it  is  deducted, 
"  thus  showing  at  all  times  the  balance  in  the  bank.  "  Some  bookkeepers  use  both  sides  of 
the  check-stub  for  the  bank  account,  while  others  use  only  the  back  of  the  stub  for  that 
purpose.  Each  method  has  its  peculiar  advantage,  but  the  one  here  used  has  the  merit  of 
being  simple,  and  is  easily  understood.  "  In  proving  the  Cash  Book,  the  amount  in  bank  is 
added  to  the  amount  in  drawer  or  in  safe,  and  "in  balancing  .the  Cash  Book,  the  amount  in 
bank  and  the  amount  in  safe  are  entered  on  the  right-hand  side  of  that  book,  to  "  show 
of  what  the  balance  consists.     {See  form  of  Cash  Book,  page  iii.) 

Business  of  the  Set. — "  The  business  represented  by  this  exercise  is  that  of  whole- 
saling Fruits  and  Confections.  The  tim6  covered  by  the  memoranda  of  transactions  is  two 
weeks,  commencing  Monday,  June  1,  190-,  and  ending  Saturday,  June  13,  190-, 

The  student  who  has  faithfully  worked  the  preceding  sets  in  this  book  will  have  no  diffi- 
culty in  performing  the  work  of  this  set.  It  is  the  crowning  exercise  of  the  book,  and  one 
from  which  the  diligent  and  thoughtful  student  will  derive  great  benefit. 

The  student  should  study  carefully  all  of  the  instructions  and  explanations  printed  in , 
connection  with  the  memoranda  of  transactions  in  order  that  he  may  perform  the  work  cor- 
rectly and  understandingly.     The  aim  in  writing  the  set  has  been  to  not  only  tell  the  student 


ir 


BUSINESS  PRACTICE. 


DEPOSIT  TICKET,  OR  SLIP. 


DEPOSITED  BY 

(^.  Qf:  ^^ 

IN  THE 

SCHOOL  BANK, 


BANK 


BOOK. 


®r.  SCHOOL    BANK,     In   Acct.  with     ^.Qf^.^c^cJ,    Ct. 


^u^na  4, 


190- 


Currency, 
Checks  —  Lyons, 

Hartford, 

ColL 


200 
110 
100 


410 


410 


30 


00 


190-. 

190-. 

- 

June 

1 

Cash, 

500 

June 

g 

$12.50,  $2.50,  $100. 

115 

3 

Cash, 

250 

4 

$60,  $80,  $13.40, 

153 

40 

4 

Cash, 

410 

5 

$35.  $18,  $40,  $8.10, 

91 

10 

5 

Cash, 

100 

00 

8 

75 

8 

Cash, 

350 

80 

10 

$45,  $10.20, 

55 

30 

10 

Cash, 

375 

95 

15 

89 

50 

15 

Cash, 

154 

35 

579 

20 

15 

Collection, 

198 

50 

15 

Balance, 

1760 

40 

16 

2339 
1760 

60 
40 

14 

Vouchers  return'd, 

^ 

60 

June 

Balance, 



what  to  do  but  also  why  he  does  it,  and  it  should  be  the  student's  aim  to  not  only  do  the 
work  as  directed,  to  the  best  of  his  ability,  but  to  understand  wliy  he  does  it. 

"Dealers  buy  their  goods  at  wholesale  from  jobbers,  manufacturers  and  producers. 
*^  These  goods  have  to  be  transported  from  the  place  of  business  of  the  seller  to  that  of  the 
buyer,  "  "When  the  two  places  are  in  the  same  city,  the  goods  are  usually  transported  by 
wagon.  *'  When  they  are  not  in  the  same  city,  they  are  transported  by  rail  or  by  water. 
"^  The  parties  who  transport  these  goods  from  seller  to  buyer  are  called  common  carriers. 
*'  They  are  usually  railroad,  express,  or  steamboat  companies,  "  and  they  make  a  charge  for 
their  services.  "This  charge  is  usually  paid  by  the  buyer  of  the  goods,  when  they  are 
delivered  to  him,  but  sometimes  the  seller  pays  them  in  advance  of  the  transportation  of 
the  goods. 

"When  goods  are  sold  at  wholesale,  an  invoice  is  usually  sent  to  the  buyer.  "The  object 
of  the  invoice  is  to  show  the  number,  kind  and  quality,  and  price  of  each  article  sold,  the 
date,  the  terms  of  sale,  and  the  net  amount  of  the  invoice.  "When  goods  are  received  they 
are  examined  to  see  if  the  quantity  and  kind  compare  with  the  entries  on  the  invoice.  "  If 
the  goods  '*  tally  "  all  right,  a  check-mark  is  placed  by  the  receiving  clerk  opposite  each 
entry  on  the  invoice,  and  "  if  the  prices  are  correct,  the  invoice  is  marked  0.  K.  by  the  buyer. 
"It  is  then  sent  to  the  bookkeeper  to  be  recorded. 

"  When  goods  are  sold  a  record  is  usually  made  in  a  book  called  a  Sales  Book,  and  "  from 
this  entry  the  invoice  is  made  and  sent  to  the  purchaser  of  the  goods.  {^Sce  form  of  Sales 
Book,  2^nge  v.) 

Suggestions  to  the  Student. — "  See  that  an  invoice  i^  received  for  every  purchase 
of  merchandise,  and  be  sure  that  the  amount  is  correct  before  entering  it  in  your  Journal. 
"  Enter  all  sales  of  merchandise  in  the  Sales  Book,  and  render  bills  for  the  same  from  that 
book.  •*  When  cash  is  received  from  whatever  source,  be  sure  to  make  an  entry  fot*  it  at 
once  in  the  cash  book.  "  If  the  cash  is  received  in  payment  of  a  bill  of  goods  or  to  apply 
on  account,  a  receipt  in  some  form  should  be  given  the  one  making  the  payment.  "  Count 
all  money  twice,  whether  you  receive  it  or  pay  it  out.  *'  When  payments  are  made  in  cur- 
rency, be  sure  to  make  an  entry  in  the  Cash  Book  before  paying  the  money,  and  be  sure  also 
to  get  a  receipt  for  all  payments  on  account.  *'  When  checks  are  issued,  be  sure  to  fill  out  the 
stub  before  you  do  the  check.  "  When  you  receive  a  check,  note,  or  draft,  be  sure  to  exam- 
ine it  to  see  if  it  is  properly  drawn  and  that  the  amount  is  correctly  written;  and  when  you 
give  one  of  these  papers,  be  sure  that  it  also  is  correct. 


BUSINESS  PRACTICE. 


SALES   BOOK. 
Marion,  June  1,  190-, 


L.  F. 

16 


Y'> 


19 


G.  W.  Smalley, 

Cory. 
On  acct.  10  days 


C.  L.  Troup, 

City. 


Erwin  Bros., 

City. 
0^  acct.  10  (\i 


To  Mdse., 


50  brls.  Empire  Flour,  $7.00 

10  brls.  Star  Flour,  $6.50 


40  brls.  Star  Flour,  $6.50 

10  brls.  Empire  Flour,  $7.00 


1  ton  Bran, 

500  bu.  Oats,  38^ 


Total  sales  on  time, 


350 
65 


260 

70 


330 


20 
190 


415 


210 


625 


To  the  Teacher. — In  case  this  set  is  worked  independently  of  offices,  the  invoices  of 
the  merchandise  which  the  student  is  to  buy,  should  be  made  out  in  advance.  This  may  be 
done  by  each  student  for  himself  before  beginning  work  on  the  set,  or  one  or  more  students 
may  be  assigned  the  work  of  billing  for  the  other  members  of  the  class.  The  blank  bill 
heads  for  this  purpose  may  be  taken  from  the  student's  package  of  business  forms.  The 
teacher  should  examine  these  invoices  with  reference  to  arrangement,  neatness,  and  accuracy 
of  computation.  The  correct  amount  of  each  bill  will  be  found  in  the  key  under  the  head- 
ing, "  Journal,"  for  each  day.  After  the  invoices  are  made  out,  they  should  be  arranged  in 
proper  order  and  filed  in  convenient  form  with  the  teacher,  to  be  called  for  by  the  student 
as  he  reaches  them  in  his  work.  The  teacher  should  examine,  also,  the  other  business  papers 
and  the  books  of  the  student  as  frequently  and  critically  as  his  time  will  permit,  or  the  cir- 
cumstances require.  Careless  or  inaccurate  work  of  any  kind  should  not  be  tolerated.  The 
daily  statements  should  be  kept  checked  up  to  date,  and  the  student  should  not  be  permitted 
to  go  on  with  the  work  of  any  date,  until  his  work  of  the  preceding  date  is  found  to  be  correct. 

Money  and  Stationery. — The  plan  of  this  set  contemplates  the  use  of  school  money, 
and  various  kinds  of  blank  business  forms,  in  addition  to  the  blank  books  mentioned  above. 
The  blank  books  made  to  accompany  this  book,  contain  ample  space  for  all  the  sets.  Each 
student  will  require  one  package  of  business  forms,  and  there  will  be  needed  a  supply  of 
school  money.  The  quantity  of  money  required  is  given  in  the  Teachers'  Key.  The  pub- 
lishers of  this  book  can  furnish  both  the  money  and  the  forms.  The  use  of  representative 
merchandise,  or  merchandise  cards,  is  not  recommended,  for  the  reason  that  the  object  of 
the  set  is  not  to  attempt  to  teach  the  art  of  buying  and  selling,  which  can  only  be  learned  in 
actual  business,  but  it  is  to  teach  the  art  of  drawing  business  papers,  handling  money,  and 
making  records  in  connection  with  business  transactions. 


Space  in  The  Ledger .- 

11  lines'  space  in  the  Ledger. 


-Give  Merchandise  account  22  lines,  and  all  other  accounts 


Vi  BLTSIJ^ESS  PRACTICE. 

MEMORANDA  OF  TRANSACTIONS. 
June  1,   190-, 


Commence  business  this  day  as  a  dealer  in  Fruits  and  Confections  at  the  store  No.  47 
Main  St.,  this  city. 

Make  a  memorandum  of  the  above  in  your  Journal.  Read  carefully  all  instructions  and  ex- 
planations printed  in  this  size  of  type. 

Invest  cash  in  the  business  $5000. 

Get  the  money  from  the  teacher  and  make  an  entry  for  it  in  the  Cash  Book,  extending  the 
amount  into  the  general  column.    {See  form  of  Cash  Book,  pages  ii  and  iii.) 

Head  the  Cash  Book,  as  shown  in  the  illustration,  by  writing  "Cash  Receipts"  in  a  bold, 
plain  hand,  on  the  blue  line  at  the  top  of  the  left-hand  page,  and  "  Cash  Payments  "  on  the  same 
line  at  the  top  of  the  right-hand  page.  Write  the  current  year  at  the  head  of  the  date  column 
on  each  page.  Sometimes  the  month  and  year  are  written  at  the  top  of  the  page,. and  then  the 
days  of  the  month  only  are  written  in  the  date  column. 

Write  the  word  "  Mdse  "  at  the  head  of  the  first  money  column  on  the  left-hand  page,  and 
the  word  "  Expense"  at  the  head  of  the  first  column  on  the  right-hand  page.  (See  27  and  28, 
page  ii.    See,  also,  form  of  Cash  Book,  pages  ii  and  iii.) 

Pay  Creed  &  Wilson,  city,  $10  for  office  books  and  stationery,  as  per  their  bill  of  May 
29.    {C.  B.    Expense  account.    Extend  the  amount  intb  the  special  Expense  column.) 

These  goods  are  supposed  to  have  been  bought  previous  to  commencing  business,  at  which 
time  a  bill  was  received  and  placed  on  file.  Now  that  the  books  are  open,  the  bill  is  paid  and 
entered,  as  above. 

A  receipt  should  always  be  obtained  for  money  paid  on  account.  In  business  the  receipt  is 
usually  made  and  signed  by  the  one  to  whom  the  money  is  paid.  But  in  this  work,  to  save  the 
teacher  unnecessary  labor  and  to  give  you  additional  practice,  you  will  be  required  to  draw  up 
the  business  papers,  except  the  signatures,  of  all  the  parties  to  the  transactions.  You  will,  of 
course,  sign  your  own  papers,  and  the  teacher,  who  represents  the  other  parties,  will  sign  all 
the  other  papers. 

Remember  this :  While  you  may  draw  up  any  form  of  business  paper  you  please,  you  have 
no  right  to  sign  another  person's  name  to  the  paper,  unless  authorized  to  do  so  by  the  person 
himself.  The  signing  of  another  person's  name  to  a  business  document,  with  intent  to  defraud, 
is  forgery,  and  forgery  is  a  crime. 

You  will  now  take  from  your  package  of  business  forms  a  receipt  blank  and  fill  it  out  for  the 
teacher  to  sign.  A  receipt  should  show  when  and  where  the  money  was  paid,  by  whom  and  to 
whom  paid,  the  amount  and  for  what  paid.  Your  receipt  when  made  and  signed  should  corres- 
pond to  the  following 

FORM   OF    RECEIPT. 


(yieteimd  <y    '^  -^^^e^/" 


^^^   J?^^^  ■/,  /fo.. 


e-j^ 


<*^. 


BUSmSSS  PRACTICE.  vii 

Sometimes  ihe  bill  itself  is  sent  with  the  money,  when  a  payment  like  the  above  is  made, 
and  then  the  bill  is  receipted  and  returned. 

In  dating  all  of  the  business  papers  in  this  work,  use  the  name  of  the  place  in  which  your 
school  is  located.  For  instance,  if  in  Athens,  Pa.,  you  would  date  the  above  receipt  "  Athens, 
Pa.,  June  1,  190-,"  excepting  in  the  place  of  the  dash  after  the  9  you  would  write  the  figure  that 
would  cause  the  number  to  express  the  current  year. 

Now  deliver  the  money  and  the  receipt  to  the  teacher,  who  will  sign  the  latter  and  return 
it  to  you.  Place  the  receipt,  after  it  is  signed,  in  the  envelope  marked  "  Vouchers,"  which  you 
will  find  in  your  package  of  business  forms.  A  voucher  is  a  document  or  paper  proving  that 
some  transaction  has  occurred. 

Keceive  from  the  following  firms  invoices  of  merchandise  bought  on  account:  Green  & 
Co.,  New  York,  Invoice  No.  1,  dated  May  28th,  100  bxs.  Oranges,  @  $3.50;  100  bxs.  Lemons, 
@  $3.00;  100  Pineapples,  @  8^  ea.  C.  B,  Smith  &  Co.,  Buffalo,  Invoice  No.  2,  dated 
May  30th,  50  bxs.,  5  lbs.  ea..  Assorted  Candy,  @  18^;  100  lbs.  Stick  Candy,  @  12^; 
100  bxs.  5  lbs,  ea.,  Gum  Drops,  @  15^.  Boone  &  Cook,  Batavia,  Invoice  No.  3,  dated  May 
37th,  50  bbls.  Early  Harvest  Apples,  @  $5.75.     {Enter  in  Journal  hut  do  not  detail  the  items.) 

Call  at  the  teacher's  desk  and  get  the  above  mentioned  invoices.  {See  54  to  59  page  iv.) 
After  the  invoices  have  been  verified,  enter  them  in  the  Journal.  Then  in  the  lower  left-hand 
corner  of  each  invoice  write,  "  Entered  in  J  "  and  also  the  page  on  which  the  entry  appears. 
Next  fold  each  invoice  and  file  it  as  illustrated  below,  and  place  in  the  envelope  marked 
*'  Invoices,"  which  you  will  find  in  your  package  of  business  forms. 

FORM    OF    FOLDING    AND    FILING    INVOICES. 


The  above  is  one  of  the  simplest  methods  of  folding  and  filing  invoices.  Another,  and  a  quite 
common  method,  is  to  paste  the  invoices  in  a  blank  book,  called  an  Invoice  Book. 

In  most  modern  business  offices,  the  invoices,  letters  and  other  papers  to  which  frequent  ref- 
erence is  likely  to  be  made,  are  filed  in  labor-saving  mechanical  devices,  made  expressly  for  this 
purpose,  and  of  which  there  are  many  varieties. 

Sell  to  Moore  &  Son,  city,  for  cash:  1  bx.  Oranges,  $G;  1  bx. Lemons,  $5.50;  1  bbl.  E.  H. 
Apples,  17.  {Enter  in  Sales  Book  and  mark  "Paid."  See  17  to  21,  page  ii.  See  also 
60  and  61  .page  iv.) 

After  entering  the  sale  in  your  Sales  Book  make  out  the  invoice  and  hand  to  teacher.  Write 
"Cash"  after  the  word  "Terms"  on  the  invoice.  When  the  cash  is  paid  to  you  receipt  the 
invoice,  as  shown  in  the  form  on  the  following  page. 

Upon  returning  to  your  desk  and  before  putting  away  the  money,  enter  the  foregoing  cash 
sale  in  your  Cash  Book.    {8ee  27^  page  ii,  and  form  of  Cash  Book,  page  ii.) 

Sell  Horton  Bros.,  city,  on  account:   5  bxs.  5  lbs.  ea..  Assorted  Candy,  @  25^;  4  bxs. 


vm 


BU8IWE8S  PRACTICE. 
FORM  OF  RECEIPTED  INVOICE. 


M 


e<i<14<i. 


<^i?4^     i^     -'^O^^f^, 


^t/^,    Jw<?  /,  -/fO. 


^fA^, 


Terms  :—    "^w*^ 


Bought   of    "STUDENT," 


/ 

-t^//  (^.  (SC  t^-d^. 

/ 

■/ 

-Cm.     Cj'*****^"*' 

^ 

/ 

s 

so 

■/(f 

60 

Oranges,  @  $6;  2  bxs.  Lemons,  @  $5.50.     {Enter  in  Sales  Book,  extending  the  amount  into 
the  second  money  column.     See  form  of  S.  B.  page  v. ) 


Sell  Lyman  &  Co.,  city,  on  account:   10  bbls.  E.  H.  Apples, 
$5.75;  10  bxs.  Lemons,  @  $5.50. 


.25;  20  bxs.  Oranges, 


Sell  Parsons  &  Co.,  city,  on  account:  5  bxs.,  5  lbs.  ea..  Assorted  Candy,  25^;  5  bxs., 
5  lbs.  ea..  Gum  Drops,  @  20^;  25  lbs.  Stick  Candy,  @  16^;  24  Pineapples,  @  12^^-;  1  bbl. 
E.  H.  Apples,  $7.25.  {Render  invoices  for  the  above  sales,  but  do  tiot  receipt  them.  Deliver 
the  invoices  to  the  teacher.) 


{Enter  in  Chech  Book  only.     See  form  of  Ck. 


Deposit  in  School  Bank,  cash,  $4750. 
B.,  page  55.) 

When  a  deposit  is 'made  in  a  mercantile  bank  a  deposit  slip  or  ticket,  properly  filled  out,  and 
the  bank  book  should  accompany  the  deposit.  The  deposit  slip  is  for  the  convenience  of  the 
Dank,  as  it  shows  by  whom  and  when  the  deposit  was  made,  of  what  it  consisted  and  the  amount. 
See  form  of  deposit  slip,  page  iv.) 

The  bank  book  is  for  the  benefit  of  the  depositor,  as  it  contains  receipts  from  the  bank,  in 
the  form  of  entries,  for  all  deposits.  It  also  contains  a  record  of  the  checks  that  have  been  paid 
by  the  bank.     (See  form,  of  Bank  Book,  page  iv.) 

The  deposits  are  entered  on  the  left-hand  pages,  and  the  checks  on  the  right-hand  pages  of 
the  bank  book.  The  deposits  are  entered  at  the  time  they  are  made,  but  the  checks  are  not 
entered  until  the  book  is  "  written  up,"  which  is  at  such  times  as  the  depositor  leaves  his  book 
at  the  bank  for  that  purpose.  When  the  bank  book  is  written  up  it  exhibits  a  copy  of  the  de- 
positor's account,  as  it  appears  on  the  books  of  the  bank,  the  balance  to  his  credit,  and  the  num- 
ber of  vouchers  returned  to  him.     {See  form  of  Bank  Book,  page  iv.) 

In  business,  banks  furnish  their  depositors  the  necessary  stationery,  such  as  deposit  slips, 
check  books  and  bank  books,  for  transacting  their  banking  business.  Some  business  men,  how- 
ever, prefer,  for  various  reasons,  to  use  Check  Books  made  expressly  for  themselves. 

You  will  now  fill  out  a  deposit  slip  for  the  above  deposit  (see  form ,  page  iv),  and  make  an 
entry  for  it  in  the  Check  Book.  (See  form  of  Check  Book,  page  55.)  Next  count  out  the  money 
to  be  deposited,  and  place  it  and  the  deposit  slip  between  the  leaves  of  your  bank  book,  in  such  a 
way  that,  when  the  deposit  is  taken  out,  the  deposit  slip  will  be  on  top,  and  the  book  will  be  open 
at  the  page  where  the  entry  for  the  deposit  will  be  made.  Next  hand  the  bank  book  and  its 
contents  to  the  teacher,  who  will  give  you  credit  for  your  deposit,  after  first  writing  your  name 
on  the  cover  and  at  the  top  of  the  right-hand  page  of  your  bank  book.  (See  form  of  Bank 
Book,  page  iv.) 


BUSINESS  PRACTICE.  \x 

No  entry  is  required  in  the  Cash  Book  when  a  deposit  is  made,  for  the  reason  that  cash  in 
bank  is  treated  as  cash  on  hand. 

Pay  rent  of  store  for  one  week  by  check  on  School  Bank,  $12.50. 

Open  the  Check  Book  and  fill  out  the  stub  of  the  first  check  as  follows :  On  the  No.  line 
write  "1";  on  the  Date  line  write  "June  1,100-.  "  ;  on  the  next  line  write  "J.  B.  Clark";  on  the 
next,  "  rent  of  store  1  week  "  ;  and  in  the  money  column  opposite  the  word  "  Am't "  write  "13.50." 
(See  form  of  Check  Book,  page  55.)   Deduct  the  amount  of  the  check  from  the  amount  on  deposit. 

After  filling  out  the  stub,  but  not  before,  fill  out  the  blank  check  at  the  right  of  and  attached 
to  the  stub,  then  detach  the  check.  In  filling  out  a  check  be  careful  to  write  legibly.  Notice 
that  the  amount  is  written  twice  in  the  check,  once  in  figures  and  once  in  words.  The  words 
should  be  commenced  at  the  extreme  left  of  the  amount  line,  and  if  after  writing  them  there 
should  be  any  space  between  them  and  the  printed  word  Dollars,  it  should  be  filled  with  a  heavy 
wave  line.    (See  form  of  Ck.  Bk.,  page  55.)   The  figures  should  be  written  close  to  the  dollar  sign. 

Now  make  an  entry  on  the  right-hand  side  of  the  Cash  Book,  as  follows  :  June  1,  Expense, 
rent  per  check  No.  1,  13.50,  extending  the  amount  into  the  special  expense  column.  (See  form  of 
Cash  Book,  pageiu.)  Next  turn  to  the  Check  Book  and  on  the  stub  under  the  word  "For" 
make  a  check-mark  |/,  which  indicates  that  the  check  has  been  entered  in  the  Cash  Book.  Bear 
in  mind  that  the  stub  of  the  Cheek  Book  is  used  as  a  Day  Book  for  payments  made  by  check,  and 
that  the  entries  made  in  the  Cash  Book  for  the  same  are  debit  entries. 

Next  fill  out  a  blank  receipt  for  the  above  payment,  and  hand  it  and  the  cheek  to  the  teacher. 
File  the  receipt  as  heretofore  instructed. 

You  will  now  prove  your  cash  and  post  the  books.  The  sura  of  the  cash  in  bank  and  in 
drawer  should  equal  the  difference  between  the  sides  of  the  Cash  Book.  Foot  tiie  columns 
of  the  Cash  Book  daily  in  pencil,  but  do  not  rule  the  book  until  so  directed.  Make  your 
pencil  footings  small  and  close  to  the  ink  figures.  Post  from  the  Journal  the  same  as  here- 
tofore. {See  page  v  for  Ledger  space. )  In  posting  from  the  Cash  Book,  post  only  the  items 
which  appear  in  the  General  columns,  those  on  the  left-hand  page  to  the  credit,  and  those 
on  the  right-hand  page  to  the  debit  of  their  respective  accounts.  Check  each  Mdse.  and 
Expense  item  thus  V.  Post  from  the  Sales  Book  the  time  sales,  debiting  each  purchaser  for 
the  amount  of  his  purchase.  The  footing  of  the  time  sales  column  in  the  Sales  Book  and 
the  footing  of  the  special  columns  in  the  Cash  Book  will  be  posted  at  the  end  of  the  week. 
nAII  V   QTATFMFWT  After  posting  the  books,  take  from  your  pack- 

UAILY    blAltlVltlMI.  ^gg  Qf  business  forms  a  blank  Daily  Statement, 

Journal  Entries.  ^^^   ^^^   ^^  ^^^  ^^  shown   in  the  accompanying 

jj^g^gQ^                    1077.50.  form,  and  hand  to  the  teacher. 

To  Green  &  Co.. 658.  Before  commencing  the  work  of  any  date,  learn 

C.  B.  Smith  &  Co.  132.  ^^  J^"^  statement  for  the  preceding  date  was  cor- 

Boo7ie  i&  Cook 287.50.  ^ect. 

„        „        ^  In  your  record  work  observe  the  following  in- 

Sales  Book  Entries.  +      f- 

Moore  &  Son  {Pel.) 18.50.  structions: 

HortonBros ^1.25.  Write  a  small  hand. 

LymMn<&Co 21,2.50.  Do  not  shade  except  m  Ledger  headings. 

Parsons  S  Co 25.50.  Make  smal ,  legible  figures. 

root  all  columns  first  in  pencil. 

Deposited *^".    ^°°l'. 1^750.  ^'^  ^^^  make  any  erasures  in  a  book  of  original 

Bank  Balance 1,737.50.  entry. 

On  Hand 258.50.  ^^  1^^  make  a  mistake,  draw  your  pen  through 

Name            "  Student  "  *^®  writing  and  make  the  correct  record  above  it. 
Dite            '  Tvnp  1  "^^  ^^^  omit  to  write  the  year  at  the  head  of 
'- — '-^ '- —  every  year  column  in  all  your  books. 

date.  blots. 


X  BUSINESS  PRACTICE. 

June  2,  190-, 

Pay  freight  bill,  $22.95,  in  cash,  for  the  goods  received  from  Green  &  Co.  on  the  1st 
inst.  The  weight  of  the  goods  is  as  follows:  100  bxs.  Oranges,  7500  lbs.;  100  bxs.  Lemons, 
7500  lbs.;  1  hhd.  Pineapples,  300  lbs.  Rate,  15^  per  cwt.  {Enter  in  Cash  Book,  and 
charge  Mclse.  account  extending  the  amotmt  into  the  general  column. ) 

When  goods  that  have  been  shipped  by  freight  are  delivered  to  the  buyer,  ne  is  required 
to  sign  a  receipt  for  them,  and  to  pay  the  freight  charges,  if  any,  for  which  payment  he 
also  is  given  a  receipt.  Both  receipts  are  made  out  by  the  transportation  company,  and  are 
similar  in  form  to  the  following: 

FREIGHT   BILL. 


Date  of  W.  B.  May  28.               W.  B.  No.  315 

,                   ,                                                                                          June  i,190- 
btucieTit, 

To  the  INTER-STATE  TRANSPORTATION  COMPANY,  Br.. 
For  Transportation  from  J^eiv  York  City    to    ( this  place  ) 

100  hxs.  Oranges, 
100  bxs.  Lemons, 
1  hhd.  Pineapples, 

WEIGHT. 

RATE. 

AMOUNT. 

7500 

7500 

300 



95  ' 

15300 

15<^ 

22 

ADVANCE  CHARGES. 

No.  Car  W.  S.  75306       Received  payment, 

E.  T.  Jones, 

SPECIAL   MOTICE.                           Freight  Agent. 

Payment  is  required  on  delivery  of  Goods,  and  will  not  be  valid  unless  made  to  the 
Freight  Agent,  or  to  some  iierson  authorized  by  him. 

$         22 

95 

1 

FREIGHT    RECEIPT. 


Date  of  W.  B.    May  28.             W.  B.  No.  315 

June  i,190-. 

Received  June  i,  190-,  from  the 

INTER-STATE 

TRANSPORTATION   COMPANY, 

the  following  packages  from  Jfew  York  City,  in 

good 

order,  i 

iiarked : 

"  StizcLent/' 

100  bxs.  Oranges  J 
100  bxs.  Lemons, 

1  hhd.  Pineapples. 

Charges,  $22.95 

Car  No.  W.  S.  75306 

"  StvLcient. 

)  > 

You  will  now  take  from  your  package  of  business  forms  a  blank  Freight  Bill  and  Freight 
Receipt,  and  fill  them  out  as  shown  in  the  forms  above.     Sign  the  Freight  Receipt. 

Then  hand  the  Freight  Bill,  Freight  Receipt,  and  the  money  to  the  teacher,  who  will 
sign  and  return  the  Freight  Bill  to  you  after  detaching  it  from  the  Freight  Receipt.  File 
the  receipted  bill  as  a  voucher. 


BUSINESS  PRACTICE.  x{ 

Pay  the  following  petty  expenses  in  cash:     Pens  50^,  ink  75^,  pencils  60^,  pins  15^. 

Short  extend  the  above  items  in  Cash  Book,  thus  :  June  2.  Expense.  Pens  "^  ink  "^  peTi- 
eils  '"f  pins  •=?— 2.00. 

Pay  the  cash  to  the  teacher.  No  receipt  is  required.  No  bill  is  necessary,  as  ^oods  sold  over 
a  retail  counter  for  cash  are  never  billed,  unless  the  amount  is  large  or  a  bill  is  called  for. 

Sell  for  cash  to  W.  G.  Mason,  city:  5  bxs.  Oranges,  @  $6;  1  bbl.  E.  H.  Apples,  $6.50; 
1  bx.  Lemons,  $5.50.     {K  B.  eg  C.  B.)     {See  18  to  21,  p.  ii.) 

Render  bill  and  receipt  the  same,  then  hand  to  the  teacher  and  receive  the  cash.  {See  form 
of  receipted  invoice,  page  viii.) 

Sell  Newman  &,  Son,  city,  on  account:  10  bbl.  E.  H.  Apples,  @  $7;  5  bxs.  Oranges, 
@  $6. 

Sell  R.  D.  Lawrence,  city,  on  account:  1  bx.  Oranges,  $6;  5  bxs.  Lemons,  $5.40;  5  bbls. 
E.  H.  Apples,  $6.90. 

Sell  Brown  &  Son,  Hartford,  on  account:  20  bxs.  Lemons,  @  $5.50;  20  bxs.  Oranges, 
@  $6.  {Enter  the  above  sales  in  the  Sales  Book  and  render  invoices  for  the  same.  Foot  and 
rule  the  S.  B.  at  the  bottom  of  the  first  page  and  carry  the  footing  forward  to  the  next  page. 
See  form  of  S.  B.,  page  v.) 

As  Brown  &  Son's  place  of  business  is  not  in  this  city,  the  goods  will  have  to  be  shipped  to 
them.     {See  47  to  51,  page  iv.) 

When  goods  are  delivered  to  a  railroad  or  an  express  company  for  transportation,  a  receipt 
for  the  goods  is  given  the  shipper  by  the  company.  These  receipts  are  usually  made  out  by  the 
shipper  on  blanks  furnished  by  the  transportation  company,  and  are  signed  by  an  agent  of  the 
company. 

A  receipt  for  the  above  shipment  would  be  similar  in  form  to  the  following 

Shipping  Receipt. 


(This  Place),  June  2,  190- 
Received  from  "  Student " 

BY  INTER-STATE  TRANSPORTATION  COMPANY, 

The  property  described  below,  in  apparent  Rood  order,  except  as  noted  (contents  and  condition  of  contents  of 
packages  unknown),  marked,  consigned,  and  destined  as  indicated  below,  wliich  said  Company  agrees  to  carry  to  the 
said  destination,  il  on  its  road,  otherwise  to  deliver  to  another  carrier  on  the  route  to  said  destination. 

It  IS  mutually  agreed,  in  consideration  of  the  freight  charged  for  this  service,  as  to  each  carrier  of  all  or  any  of  said 
property  over  all  or  any  portion  of  said  route  to  destination,  and  as  to  each  party  at  any  time  interested  m  all  or  any  of 
said  property,  that  every  service  to  be  performed  hereunder  shall  be  subject  to  all  the  conditions,  whether  printed  or 
written,  shown  or  endorsed  hereon,  and  which  are  hereby  agreed  to  by  the  shipper  and  by  him  accepted  for  himself 
and  his  assigns  as  just  and  reasonable. 


MARKS,  CONSIGNEES,  AND  DESTINATION. 

DESCRIPTION  OF  ARTICLES. 

WEIGHT. 

SUBJECT  TO  CORRECTION. 

Brown  d  Son, 

Hartford, 

20  bxs.  Lemons 
20  bxs.  Oranges 

1500 
1500 

For  Inter-State  Transportation  Co., 

W.  B.  WILSON,  Freight  Agent. 

Read  the  conditions  endorsed  on  back  of  this  receipt. 

Tou  will  now  fill  out  a  shipping  receipt,  like  the  above,  on  one  of  the  blanks  which  you  will 
find  in  your  package  of  business  forms,  and  take  it  to  the  teacher  to  be  signed.  Next  enclose  the 
receipt  and  the  invoice  in  an  envelope  addressed  to  Brown  &  Son,  Hartford,  and  hand  to  teacher. 

Deposit  cash  $225  in  School  Bank.     {See  explanation  for  the  deposit  of  June  1.) 

In  making  up  a  deposit  arrange  the  money  so  that  it  may  be  easily  and  quickly  counted  at 
the  bank.     Put  bills  of  the  same  denomination  together,  faces  upward. 

To  count  paper  money,  place  a  convenient  number  of  bills  in  the  left  hand,  faces  upward; 
close  the  hand  until  the  ends  of  the  middle  finger  and  thumb  nearly  meet;  with  the  fore  finger 


Xll 


BUSINESS  PM  AC  TICK 


and  thumb  of  the  right  hand  remove  one  bill  at  a  time,  in  such  a  way  that  it  will  pass,  imder 
slight  pressure,  between  the  ends  of  the  middle  finger  and  thumb  of  the  left  hand.  In  laying  the 
bills  down,  take  pains  to  arrange  them  in  a  compact  pile,  instead  of  spreading  them  loosely  over 
the  desk. 

Prove  the  cash  and  post  the  books  for  the  day,  after  which  make  out  a  Daily  Statement 
and  hand  it  to  the  teacher.     The  cash  in  drawer  is  $50.55. 

June  3,  190- 
Eeceive  from  Horton  Bros.,  to  balance  account,  their  note  for  $41.25,  dated  June  2d, 
at  10  days,  payable  at  School  Bank.     {Enter  in  J.  £  B.  B.) 

Take  from  your  package  of  business  forms  a  blank  note  and  fill  it  out  in  accordance  with  the 
above  terms,  and  hand  to  the  teacher  to  be  signed.  When  properly  filled  out  and  signed  it  will 
correspond  to  the  following  form  of 

Promissory  Note. 


{City),  J'lzjze  ^,  19 O 


V^^-^    IQQ 

TeTh  cLouys  ctftei^  dctte  lAre  pi^oirtzse  to  pcty  to  tKe 

order  of„.^^.^^^_^'StiLd.e,n.t"^ ^t-tl  ScJxool  Ciz.T'i^eTxcy , 

Fo-rty-OTte~     ^.^^^^^..^.^..^...,^^ .     Dollars, 

Dctyahle  cut  Scltool  DctnTz. 
Vctlize  deceived 


No.  35,     Diza  JUize,  1^ ,   190-. 


HORTOK  BROS. 

per  T. 


In  determining  the  maturity  of  a  note,  count  forward  the  exact  number  of  days  expressed  in  the  body 
of  the  note,  if  for  "days  after  date,"  and  months,  if  "  mos.  after  date." 
Place  the  note  in  the  envelope  marked  "  Note  File." 

Sell  Lyman  &  Co.,  on  account:  5  bbls.  E.  H.  Apples,  @  $6.90;  5  bxs.  Oranges,  @  $6; 
10  bxs.  Lemons,  @  $5.40. 

Make  invoice  for  above  and  for  aU  sales  made  hereafter,  without  further  instructions. 

Sell  J.  R.  Peck,  city,  for  cash:  1  bx.  Oranges,  $6;  1  bx.  Lemons,  $5.50;  1  bbl.  E.  H. 
Apples,  $7.     {S.  B.  &C.B.) 

Sell  Smith  &  Van  Dorn,  Lockport,  on  account :  10  bxs.  5j|  ea.  Gum  Drops,  @  300 ;  10 
bxs.  5}|  ea.  Assorted  Candy,  @  25^;  10  bxs.  Oranges,  @  $6;  1  bbl.,  25  Pineapples,  @  Vl\i. 
{Make  out  shipping  receipt  and  enclose  with  invoice.     See  sale  to  Brown  &  Son,  June 2.) 

Receive  from  Lyman  &  Co.,  cash,  $100,  to  apply  on  account. 

"Write  a  receipt  for  the  above  payment.  {See  form  of  receipt,  page  vi.)  In  the  receipt  after 
the  word  "  For"  write,  to  apply  on  account. 

Call  at  the  teacher's  desk,  get  the  money,  and  leave  the  receipt.  Make  the  proper  entry  in 
the  Cash  Book.    File  the  receipt  as  a  voucher. 

Pay  by  check  on  School  Bank  freight  bill  on  goods  received  from  Boone  &  Cook,  Batavia, 
on  the  1st  inst.,  50  bbls.  Apples,  7500  lbs.,  rate  150  per  cwt.,  $11.25.     {Mclse.  acct.) 

Make  out  freight  bill  and  freight  receipt  similar  to  the  ones  illustrated  on  page  x.  Draw 
your  check,  favor  Agt.  Inter-State  Transpt.  Co.,  and  hand  it,  together  with  the  freight  bills,  to 
the  teacher.    Remember  to  enter  the  check  in  the  Cash  Book.    File  the  receipted  bill. 

Deposit  cash  $125  in  School  Bank. 

Prove  the  cash,  post  the  books,  and  make  out  Daily  Statement.     Cash  in  drawer  $44.05. 


BUSINESS  PRACTICE.  xiii 

June  4,  190-, 

Pay  cash  for  the  following  petty  expenses:  Postage,  $1;  stationery,  25 jf;  cartage,  $2.50. 
{SJiort  extend.     See  explanation,  page  ix.) 

Buy  of  L.  A.  Wendell  1  horse,  $100;  1  delivery  wagon,  $75;  1  single  harness,  $18;  1 
blanket,  $3;  1  whip,  $1,  and  pay  for  same  by  check  on  School  Bank.  {Charge  Horse  S 
Wagon  acct.  in  Cash  Book.     Get  a  receipt  for  your  check.) 

Receive  from  R.  D.  Lawrence  his  5-da.  note,  dated  June  3d,  for  the  amount  of  the  invoice 
sold  him  on  tlie  2d  inst. 

See  Lawrence's  account  for  the  amount  of  the  above  invoice.  Draw  up  the  note  and  have  it 
signed  by  the  teacher,  after  which  place  it  in  your  Note  File. 

Buy  of  Myers  Bros.  &  Co.,  city:  100  bunches  Bananas,  @  90{^,  and  pay  for  same  by 
check  on  School  Bank.     (Mclse.  ^c  in  Cash  Book.) 

Make  invoice  and  get  it  receipted  when  you  deliver  the  check. 

Sell  Putnam  &  Wood,  city,  on  account:  1  bx.  Lemons,  $5.75;  1  bbl.  E.  H.  Apples,  $7.25; 
10  Pineapples,  @  12^^. 

Sell  Moore  &  Son,  city,  for  cash:  2  bbls.  E.  H.  Apples,  @  $7;  2  bunches  Bananas,  @  $1-50. 

Sell  W.  G.  Mason,  city,  on  account:  1  bx.  Oranges,  $6;  1  bx.  Lemons,  $5.50,  1  bunch 
Bananas,  $1.60;  2  bbls.  E.  H.  Apples,  @  $7.50. 

Remember  to  foot  and  rule  the  Sales  Book  at  the  bottom  of  each  page. 

Receive  cash  of  Parsons  &  Co.,  city,  to  apply  on  account,  $25.50. 

Deposit  cash  $75  in  School  Bank. 

Prove  the  cash,  post  the  books,  and  make  out  Daily  Statement.     Cash  in  drawer,  $7.80. 

June  5,  190-, 

Draw  a  draft,  at  one  day's  sight,  on  Brown  &  Son,  Hartford,  for  $115,  to  apply  on  their 
account.  Date  the  draft  to-day,  and  make  it  payable  to  the  order  of  yourself.  Hand  the 
draft  to  the  teacher  for  acceptance.  The  acceptance  is  dated  to-day,  payable  at  Bank  of 
Hartford.  {Enter  in  Bill  Book  atid  Journal.  See  form  of  acceptance,  page  76,  and  expla- 
nation, page  77.) 

In  business  a  draft  like  the  above  would  be  sent  by  mail  to  the  drawee  to  be  accepted  and 
returned;  or  it  would  be  left  at  the  bank  and  the  bank  would  forward  it  for  acceptance  and  return. 

Business  usage  requires  that  when  a  draft  is  drawn  on  a  customer  he  should  be  notified  of  it. 
No  particular  form  of  words  is  necessary,  a  simple  notice  like  the  following  being  sufficient: 

Notice  of  Draft. 

June  5, 190-, 
Brown  &  Son. 

Hartford. 
Gentlemen, — I  have  this  day  drawn  on  you  at  one  day's  sight,  as  per  agreement,  for  One 
Hundred  Fifteen  Dollars,  being  one-half  the  amount  of  your  purchase  of  the  2d  inst. 
Trusting  you  will  honor  the  same,  and  awaiting  a  continuance  of  your  favors,  I  am, 

Yours  respectfully, 

"STUDENT." 

"Write  a  letter  similar  to  the  above  on  a  letter-head,  enclose  it  in  an  envelope  properly  addressed 
and  hand  to  the  teacher.  After  getting  the  draft  accepted  make  the  proper  entries  for  it,  and 
place  it  in  the  note  file. 

^Pay  in  cash  freight  on  goods  received  from  C.  B.  Smith  &  Co.,  Buffalo,  170  bxs.  Candy, 
1020  lbs.,  rate  25^  per  cwt. 

Follow  the  instructions  given  heretofore  in  similar  cases. 


xiv  BUSINESS  PRACTICE. 

Draw  your  note  favor  of  Boone  t&  Cook,  payable  six  days  after  date  at  School  Bank,  for 
the  amount  of  their  account,  and  remit  it  to  them.     {Bill  Book  ami  Journal.) 

After  drawing  the  above  note  write  Boone  &  Cook  a  letter  stating  that  you  enclose  your  note 
for  the  amount  of  their  invoice  of  May  27.  Enclose  the  note  and  letter  in  an  envelope  properly 
addressed  and  hand  to  the  teacher. 

Sell  Moore  «&  Son,  city,  for  cash:  2  bxs.  Lemons,  @  $5.50;  2  bxs.  Oranges,  @  $6;  25 
Pineapples,  @  11^. 

Sell  Bancroft  &  Bro.,  city,  for  cash:  5  bunches  Bananas,  @  $1.40;  1  bbl.  E.  H.  Apples, 
$7;  5  bxs.,  5|f  ea..  Gum  Drop,  @  20^;  15  lb.  Stick  Candy,  @  180. 

Sell  Horton  Bros.,  city,  on  account:  5  bxs.  Lemons,  @  $5.40;  2  bunches  Bananas, 
@  $1.50;  5  bxs.,  5|{  ea..  Gum  Drops,  @  2Q<}i',  5  lbs.  Stick  Candy,  @  18^. 

Sell  Brown  &  Son,  Hartford,  on  account:  5  bxs.  Oranges,  @  $0.10;  10  bxs.  Lemons, 
@  $5.50. 

Remember  to  make  out  shipping  receipt  for  above  sale. 

Receive  of  Lyman  «&  Co.,  city,  cash  $42.50,  to  apply  on  account. 

Deposit  cash  $80  in  School  Bank. 

Prove  the  cash,  post  the  books,  and  make  Daily  Statement.     Cash  in  drawer,  $15.20. 

June  6,   190- 
Receive  cash,  $50,  of  Newman  &  Son,  city,  to  apply  on  account. 

Accept  Green  &  Go's  draft  on  you  at  four  day's  sight  for  $358,  on  account.     {B.  B.  £  J.) 

Draw  the  above  draft  and  have  it  signed  by  the  teacher,  after  which  accept  it,  dating  the 
acceptance  to-day,  payable  at  School  Baink,  and  make  the  proper  entries  for  the  transaction. 
Then  hand  the  draft  to  the  teacher. 

Sell  Chas.  W.  Wilson,  city,  for  cash:  5  bunches  Bananas,  @  $1.35;  3  bxs.  Lemons, 
@  $5.40;  2  bxs.  Oranges,  @  $5.85;  5  bxs.,  5|}  ea..  Gum  Drops,  @  180. 

Sell  John  R.  Peck,  city,  on  account:  5  lbs.  Stick  Candy,  @  170;  5  bxs..  5||  ea..  Assorted 
Candy,  @  230;  2  bunches  Bananas,  @  $1.40;  1  bx.  Lemons,  $5.50. 

Sell  Parsons  &  Co.,  city,  on  account:  3  bunches  Bananas,  @  $1.35;  1  bbl.  E.  H.  Appies, 
$6.75;  2  bxs.  Lemons,  @  $5.45;  2  bxs.  Oranges,  @  $5.85;  5  bxs.,  5|}  ea.,  Gum  Drops,  @  190; 
6  lbs.  Stick  Candy,  @  160. 

Sell  Neiyman  &  Son,  city,  on  account:  2  bxs.  Lemons,  @  $5.45;  1  bx.  Oranges,  $5.85; 
6  Pineapples,  @  100;  2  bunches  Bananas,  @  $1.40. 

Pay  cash,  $3.50,  for  horse  feed.     {Expense  °jc.     Short  extend  this  item.) 

Buy  of  G.  A.  Raymond  1  second-hand  office  safe,  and  pay  for  same  by  check  on  School 
Bank,  $45.     {Expense  "Jc.     Short  extend.) 

Some  business  men  prefer  to  charge  such  a  purchase  as  the  above  to  an  account  called  Furni- 
ture and  Fixtures  acct.,  while  others  prefer  to  charge  it  to  Expense  acct.  In  either  case  the  result 
Is  practically  the  same,  as  the  property  is  inventoried  at  its  estimated  value  at  the  time  of  making 
%  Balance  Sheet. 

Deposit  cash,  $65,  in  School  Bank. 

Pay  cash,  $15,  for  clerk  hire  for  the  week.     {SJiort  extend.) 

Add  the  short  extended  items  and  enter  the  amount  in  the  expense  column. 

Draw  cash,  $10,  from  busmess  for  private  use. 
Charge  your  own  account  for  the  above  withdrawaL 


BUSINESS  PRACTICE.  XT 

Prove  the  cash,  foot  the  special  columns  in  the  Cash  Book  and  carry  the  footings  of  these 
columns  into  the  General  columns,  as  shown  in  the  illustrations,  pages  ii  and  iii.  Cash  in 
safe,  $10.85. 

Next  balance  and  rule  the  Cash  Book.  (See  35,  page  iii,  and  form  of  Cash  Book,  pages 
ii  and  iii.)  Bring  the  balance  down  in  Cash  Book  under  date  of  the  next  business  day, 
June  8th. 

Foot  the  time  sales  column  in  the  Sales  Book  and  rule  that  book.  {See  form  of  Sales 
Book,  iiage  v. ) 

Post  the  books.  Post  the  footing  of  the  Sales  Book  and  the  footing  of  the  Mdse.  column 
in  the  Cash  Book  to  the  credit  of  Mdse.  account.  Post  the  footing  of  the  Expense  column 
in  the  Cash  Book  to  the  debit  of  Expense  account.  Post  the  other  items  as  heretofore. 
Make  out  a  Daily  Statement  and  hand  to  the  teacher. 

Now  take  off  a  trial  balance  of  your  Ledger  in  your  Trial  Balance  Book. 

June  8,   190-, 

Eeceive  from  Brown  &  Son,  Hartford,  their  check  on  the  Bank  of  Hartford,  for  $100,  to 
apply  on  account.     (C.  B.) 

Draw  up  this  cheek  on  the  Bank  of  Hartford  blank  check,  which  you  will  find  in  your  package 
of  business  forms,  and  present  it  to  the  teacher  to  be  signed.     Treat  the  check  as  cash. 

Remit  Green  &  Co.  your  check  for  $300  to  balance  their  account. 

Make  the  check  payable  to  Green  &  ^o.  Write  them  a  letter  stating  that  you  enclose  your 
check  for  the  above  amount,  to  balance  your  account,  and  ask  them  to  acknowledge  receipt  of 
same.     Fold  the  check  inside  the  letter  and  enclose  it  in  an  envelope,  properly  addressed. 

Receive  cash  $38.95  from  Parsons  &  Co.  to  balance  their  account. 

Pay  E.  Lane  cash  $15  for  signs  for  store.  {Expense.  Short  extend  all  expense  items  here- 
after.) 

Sell  Parsons  &  Co.,  on  account-  3  bbls.  E.  H.  Apples,  @  $G.75;  3  bxs.  Lemons,  @  $5.35; 
8  bunches  Bananas,  @  $1.40;  5  bxs.  Oranges,  @  $5.80. 

Sell  damaged  goods  for  cash  $7  as  follows;  1  bx.  Oranges,  1  bx.  Lemons,  10  Pineapples. 
{C.  B.  only.) 

No  entry  is  required  in  the  Sales  Book  for  the  above,  as  it  is  not  a  regular  sale,  and  no  bill  is 
required. 

Sell  Anson  &  Dow,  Fairport,  on  account:  5  bbls.  E.  H.  Apples,. @  $6.75;  15  bxs.  5||  ea. 
Gum  Drops,  @  50{Z?;  10  bxs.  5||  ea.  Assorted  Candy,  @  23^;  4  bxs.  Oranges,  @  $5.80;  4  bxs. 
Lemons,  @  $5.40. 

Sell  Putnam  &  Wood,  on  account:  5  bunches  Bananas,  @  $1.30;  2  bxs.  Lemons,  @  $5.40; 
5  bxs.  5||  ea.  Assorted  Candy,  @  23{#;  5  bxs.  5|f  ea.  Gum  Drops,  @  19{zJ;  1  bx.  Oranges,  $5.80. 

Pay  1  week's  rent  of  store  by  check,  $12.50. 

Telegraph  Boone  &  Cook,  Batavia,  to  ship  you  at  once  by  fast  freight  Fifty  barrels  Early 
Harvest  Apples;  pay  the  charges  on  the  message  in  cash,  25^.     {Expense.) 

Write  the  above  message  on  the  telegraph  blank  which  you  will  find  in  your  package  of  busi- 
ness forms,  limiting  the  number  of  words,  exclusive  of  the  address  and  signature,  to  ten.  Tele- 
graph companies  charge  a  certain  sum  for  transmitting  a  message  of  ten  words  or  less  to  a  given 
place,  and  for  all  words  over  ten  an  additional  charge  per  word  is  made. 

Your  message  when  written  should  be  similar  to  the  following  : 


XVI 


BUSINESS  PliACTIGE. 
TELEGRAPH    MESSAGE. 


THE   COMMERCIAL  TELEGRAPH    COMPANY. 


Philo  M.  Beckley,  General  Manager. 


Sylvanius  CuMMiNGS,  President. 


receiver's  no. 


TIME  FILED. 


SEND     the  following  messag^e  subject  to  tlie  terms 
on  back  bereof,  wbicb  are  hereby  agreed  to. 


J2^«^  J',  /f^-- 


To    ^o^ 


l-M 


d-ieiyi'Cti-. 


-^dtVi 

€H 

i^-nce 

/u/ 

jH-eta^/ 

/A 

■o^ei44-e^ 

OO'-i-'^^/- 

j:^W-2t?rf/ 

CyfA/t^. 

t 

" -^/cu/e-yt^. 

Deposit  currency  $35  and  the  check  received  from  Brown  &  Son  to-day.  Bank  cliarges 
you  150  for  collecting  the  check.  Also  leave  Brown  &  Son's  acceptance  at  the  bank  for 
collection.     i^CTc.  B.  and  C.  B.) 

Itemize  this  deposit  and  deduct  the  collection  as  shown  in  the  form  on  page  iv.  Charge  Expense 
in  the  Cash  Boole  for  the  collection  on  the  check.  Endorse  the  check  in  blank  and  also  the  draft 
left  for  collection.    No  entry  is  necessary  at  this  time  for  the  draft. 

Prove  the  cash,  post  the  books,  and  make  out  Daily  Statement.     Cash  in  safe,  $6.55. 

June  9,  190-, 

Goods  as  per  the  following  invoices  have  been  received  and  found  to  check  all  right: 
Green  &  Co.,  New  York,  Invoice  No.  5,  dated  June  5th,  80  bxs.  Oranges,  @  $3.25;  75  bxs. 
Lemons,  @  $2.85;  5  bbls.,  40  in  ea.,  Pineapples,  @  60.  C.  B.  Smith  &  Co.,  B.ufFalo,  Invoice 
No.  6,  50  bxs.  5|f  ea.  Assorted  Candy,  @  170.     {See  62,  page  iv. ) 

Pay  freight  on  the  goods  received  to-day  from  New  York  and  Buffalo  by  check  favor  Agt. 
Inter-State  Transpt.  Co.  The  weight  of  the  goods  is:  Oranges,  75  lbs.  per  bx.;  Lemons, 
75  lbs.  per  bx.;  Pineapples,  100  lbs.  per  bbl.;  Candy,  1  case,  275  lbs.  Kate  on  fruit  150  per 
cwt.,  and  on  candy  250  per  cwt. 

Remember  to  make  out  freight  bills  and  freight  receipts  for  the  above,  as  heretofore  instructed. 

Receive  cash  $14.25  of  Putnam  &  Wood  to  apply  on  their  account. 

Sell  Smith  &  Van  Dorn,  Lockport,  on  account:  1  bbl.  E.  H.  Apples,  $6.75;  4  bxs. 
Oranges,  @  $5.50;  6  bxs.  Lemons,  @  $5. 

Sell  W.  D.  Oliver,  city,  for  cash:  50  Pineapples,  @  110;  5  bunches  Bananas,  @  $1.35; 
2  bxs.  Lemons,  @  $4>90. 

Sell  Lyman  &  Co.,  city,  on  account:  15  bxs.  5}f  ea.  Gum  Drops,  @  200;  10  bxs.  5||  ea. 
Asso.  Candy,  @  230;  10  lbs.  Stick  Candy,  @  160. 

Pay  cash  $5  to  Globe  Publishing  Co.  for  advertisement  in  Daily  Globe.     {Expense.) 

.    Prove  the  cash,  post  the  books,  and  make  out  Daily  Statement.     Cash  in  safe,  $37.85. 


BUSINESS  PRACTICE.  xvii 

Juke  10,    190-, 

Pay  cash  $1.50  for  shoeing  horse.     {Expense.) 

The  Apples  ordered  of  Boone  &  Cook  by  telegraph  on  the  8th  inst.  have  arrived,  and  are 
invoiced  at  $5.50  per  bbl.     The  invoice  is  dated  June  8th. 

Eeceive  cash  $118.50  of  Lyman  &  Co.  in  payment  of  invoice  of  3d  inst. 

Eemit  C.  B.  Smith  &  Co.,  Buffalo,  your  check  for  $133  in  payment  of  invoice  of  May  30th. 

Pay  cash  for  freight  charges  on  the  goods  received  from  Batavia  to-day.  Weight,  150 
lbs.  per  barrel;  rate.  150  per  cwt. 

Sell  John  R.  Peck,  on  account:  85  Pineapples,  @  11^;  5  bunches  Bananas,  @  $1.35; 
3  bbls.  E.  H.  Apples,  @  $6.75;  2  bxs.  Oranges,  @  $5.50;  2  bxs.  Lemons,  @  $5. 

Sell  James  Martin,  city,  for  cash,  15  lbs.  Stick  Candy,  @  15^;  5  bxs.  5|  ea.  Assor.  Candy, 
@  22j^;  5  bxs.  5|  ea.  Gum  Drops,  @  19^;  3  bunches  Bananas,  @  $1.30. 

Sell  W.  G.  Mason,  city,  on  account:    3  bxs.  Oranges,  @  $5.50;  3  bxs.  Lemons,  @  $5; 

3  bbls.  E.  H.  Apples,  @  $6.75;  2  bunches  Bananas,  $1.35;  25  Pineapples,  @  11^^. 

Deposit  cash  $80  in  School  Bank. 

The  bank  credits  you  in  your  bank  book  for  the  amount  of  Brown  &  Son's  acceptance, 
due  on  the  9th  inst.,  less  25^  for  collecting  the  same.     {0.  B.  and  Ck.  B.) 

Have  the  teacher  enter  the  collection  in  your  bank  book,  after  which  make  the  proper  entries 
in  your  Cash  Book  and  Cheek  Book.  Charge  the  25jzS  to  Expense.  Treat  the  proceeds  of  the 
draft  the  same  as  a  deposit. 

Prove  the  cash,  post  the  books,  and  make  out  Daily  Statement.     Cash  in  safe,  $80. 

Juke  11,  190-, 

Buy  of  Keller  &  Co.,  1  Family  Carriage,  $150,  and  pay  for  same  by  check  on  School 
Bank.     {'' Student's"  acct.) 

The  above  is  not  for  use  in  the  business,  hence  it  is  charged  to  the  proprietor's  account. 

R.  D.  Lawrence  pays  his  note,  due  to-day,  in  cash. 

Surrender  the  note,  which  is  in  your  note  file,  when  you  receive  the  cash. 

Accept  Green  &  Co.'s  draft  on  you  at  1  day's  sight  for  $285.75,  to  apply  on  account. 

Sell  Horton  Bros.,  on  account:  15  bxs.  5|f  ea.  Asso.  Candy,  @  22^;  2  bbls.  E.  H.  Apples, 
@  $6.75;  2  bunches  Bananas,  $1.35. 

Sell  Newman  «&  Son,  on  account,  2  bxs.  Lemons,  @  $5;  3  bxs.  Oranges,  @  $5.50;  1  bbl. 
E.  H.  Apples,  $6.75. 

Sell  H.  H.  Strong,  city,  for  cash:  1  bx.  Oranges,  $5.40;  1  bx.  Lemons,  $4.85;  1  bbl. 
E.  H.  Apples,  $6.60;  1  doz.  Pineapples,  $1. 

Sell  Anson  &  Dow,  Fairport,  on  account:    10  bxs.  Oranges,  $5.50;  10  bxs.  Lemons,  $5; 

4  bbls.  E.  H.  Apples,  @  $6.75. 

Deposit  cash  $125  in  School  Bank. 

Prove  the  cash,  post  the  books,  and  make  out  Daily  Statement.     Cash  in  safe,  $40.35, 


XVIU 


BUSINESS  PRACTICE. 


June  12,  190-. 

Parsons  &  Co.  ask  for  a  statement  of  their  account. 
form  of  Statement  helow. ) 


STATEMENT. 


City,  June  12,  190- . 
Messrs.  Parsons  Sf  Co., 

City, 
In  account  with  ''Student." 


190-. 

Dr. 

June 

1 
6 
8 

To  mdse. 

as  per  hill  rendered, 

a 
ft 

Cr. 

25 
38 
76 

50 
95 
50 

IJfi 

95 

June 

8 

By  cash. 

25 
38 

50 

95 

76 

^ 

50 

Comply  witii  their  request.     ( !See 

A  statement  is  an  itemized  listof 
the  debit  and  credit  entries  of  axi 
account.  Statements  are  usually 
rendered  on  the  1st  of  each  month, 
and  at  such  other  times  as  it  may 
be  necessary  or  desirable.  State- 
ments are  rendered  monthly  for 
comparison  with  the  accounts  on 
the  books  of  the  parties  to  whom 
they  are  sent.  In  this  way,  if  any 
errors  have  been  made  in  posting 
these  accounts,  they  are  detected. 

When  a  customer  is  dilatory  in 
his  payments,  he  is  often  reminded 
of  that  fact  by  the  receipt  of  a 
statement,  containing  a  request  to 
please  remit. 

You  will  now  make  a  statement  of 
Parsons  &  Co.  's  account,  as  shown 
by  the  accompanying  illustration, 
on  the  blank  statement  which  you 
will  find  in  your  package  of  busi- 
ness forms.  Enclose  the  statement 
in  an  envelope  properly  addressed 
and  hand  to  the  teacher. 

Remit  C.  B.  Smith  &  Co.  your  check  for  the  balance  of  your  account. 
See  your  Ledger  for  the  amount  due  S.  &  Co. 

Receive  cash  of  Horton  Bros,  in  payment  of  the  invoice  sold  them  on  the  5th  inst. 

Accept  Boone  &  Cook's  draft  on  you  at  3  days'  sight  for  the  amount  of  their  invoice  of 
the  8th  inst. 

Sell  R.  D.  Lawrence,  on  account:   2  bbls.  E.  H.  Apples,  @  16.65;  2  bxs.  Oranges,  @  $5.50; 
1  bx.  Lemons,  15;  24  Pineapples,  @  10^;  1  bunch  Bananas,  11.30. 

Sell  Brown  &  Son,  Hartford,  on  account :    15  bxs.  Oranges,  @  $5.40;  10  bxs.  Lemons, 
@  $4.90;  5  bbls.  E.  H.  Apples,  @  $6.65. 

Sell  Hathaway  &  Son,  city,  on  account:     15  bxs.  5j}  ea.  Gum  Drops,  @  20{#;  15  bxs.  5| 
ea.  Asso.  Candy,  @  220;  10  lbs.  Stick  Candy,  lh<ti\  2  bunches  Bananas,  $1.30. 

Prove  the  cash,  post  the  books,  and  make  out  Daily  statement.     Cash  in  safe,  $76.25. 

June  13,  190-, 

Receive  from  Newman  &  Son,  their  note  at  10  days,  payable  at  City  Bank,  for  $70.15,  to 
apply  on  account. 

Pay  cash  $6.25  for  repairs  on  delivery  wagon.     {Expense.     Short  extend.) 
Receive  cash  of  John  R.  Peck  to  balance  account. 

Sell  John  R.  Peck,  On  account:     15  bunches  Bananas,  @  $1.25;  24  Pineapples,  @  10{*; 
4  bxs.  Oranges,  @  $5.35;  1  bx.  Lemons,  $4.75. 

Sell  Lyman  &  Co.,  on  account:    5  bunches  Bananas,  @  $1.25;  2  bbls.  E.  H.  Apples, 
@  $6.50;  12  Pineapples,  @  10^;  3  bxs.  Oranges,  @  $5.35;  2  bxs.  Lemons,  @  $4.75. 


BUSINESS  PRACTICE.  xix 

Sell  Putnam  &  Wood,  on  account:  3  bbls.  E.  H.  Apples,  @  $6.50;  10  bunches  Bananas, 
@  $1.25;  7  bxs.  Oranges,  @  $5.30;  3  bxs.  Lemons,  @  $4.75. 

Accept  Green  &  Co.'s  draft  on  you  at  3  days'  sight  to  balance  account. 

Pay  cash  $18.50  for  clerk  hire  for  the  week. 

Draw  your  check  for  the  amount  of  your  acceptance,  $358,  due  at  bank  to-day,  and  your 
note,  $287.50,  due  at  bank  to-morrow  (Sunday);  total,  $645.50. 

In  the  body  of  the  check  after  the  words  "Pay  to  the  Order  of"  write  my  acceptance,  $358; 
my  iwte,  $287.50.    This  is  to  show  for  what  the  check  is  given. 

In  a  few  States  of  the  Union  paper  due  on  Sunday  is  payable  on  the  following  business  day, 
but  in  most  of  the  States  such  paper  is  payable  on  Saturday. 

Deposit  in  bank  all  the  cash  on  hand.  Take  with  you  the  check  which  you  drew  to  pay 
for  paper  due,  and  get  back  the  paper  when  you  deliver  the  check.  Cancel  the  paper  by 
writing  across  the  face  of  each  in  large  letters,  the  word  "Paid."  Leave  your  bank  book 
at  the  bank  to  be  written  up. 

Draw  your  check  favor  of  teacher  for  the  amount  to  your  credit  in  the  bank,  and  hand 
to  the  teacher.     {Student's  acci.) 

Prove  the  cash,  foot  and  rule  the  Cash  Book  and  Sales  Book,  and  post  the  books.  Make 
out  Daily  Statement  and  hand  to  teacher. 

You  have  received  an  offer  from  J.  B,  Whitbeck  to  purchase  your  stock  of  goods,  good 
will  and  fixtures,  and  in  anticipation  of  accepting  the  offer  you  have  had  an  inventory  taken, 
which  is  as  follows  : 


iNVEIfTORT. 

Merchandise. — 30  bxs.  Oranges,  @  $3.25;  45  bxs.  Lemons,  @  $2.85;  28  Pineapples, 
@  6^;  15  bxs.,  5  lbs.  ea.,  Asso.  Candy,  @  17^;  10  lbs.  Stick  Candy,  @  12^;  10  bxs.,  5  lbs. 
ea..  Gum  Drops,  @  15^;  25  bbls.  E.  H.  Apples,  @  $5.50;  15  bunch.  Bananas,  @  90{^. 

Expense. — Office  Safe,  $45;  Signs,  $15;  Stationery,  etc.,  $3. 

Horse  and  Wagon. — Horse,  $90;  Wagon,  |70;  harness,  $15;  blanket  and  whip,  $3.50. 

Now  take  a  Trial  Balance,  and  make  a  statement  of  Resources  and  Liabilities,  and  Losses 
and  Gains.     Your  net  gain  is  $659.78. 

You  have  accepted  Mr.  Whitbeck's  offer,  and  he  is  to  tate  possession  on  Monday  next. 
He  is  to  assume  all  outstanding  obligations,  and  all  debts  due  you  are  to  be  paid  to  him. 
You  will  therefore  prepare  to  hand  over  the  books  and  papers  of  the  business  to  him. 

Endorse  in  full  to  J.  B.  Whitbeck  the  Bills  Eeceivable  which  you  have  in  your  Note  File. 
{See  form  of  full  endorsement,  page  S6.) 

Next  close  all  the  accounts  in  your  Ledger,  and  bring  down  the  balances.  Then  hand 
your  books  and  papers  to  the  teacher. 


XX  BUSIJ!fESS  PRACTICE. 

QUESTIOJ^S.      . 

What  practice  is  this  exercise  designed  to  give  the  student  ?  What  is  it  designed  to 
illustrate  ?  What  books  are  used  in  this  set  ?  Describe  the  Sales  Book  and  explain  its  use. 
How  are  Cash  Sales  entered  in  this  book  ?  Time  Sales  ?  How  is  the  posting  done  from 
this  book  and  when  ?  In  what  way  does  this  save  labor  ?  How  does  the  Cash  Book  in  this 
set  differ  from  the  Cash  Books  used  in  the  preceding  sets  ?  Explain  the  uses  of  the  special 
columns  in  the  Cash  Book,  and  state  what  advantage  is  obtained  thereby  ?  When  is  the 
Cash  Book  in  this  set  posted  and  how  ?  How  is  the  Cash  Book  balanced  in  this  set  ?  De- 
scribe the  Check  Book'  used  in  this  set,  and  describe  its  use  ?  How  is  the  Bank  account 
kept  in  this  set  ?  In  proving  and  balancing  the  Cash  Book  what  is  done  with  the  amount 
in  bank  ?  Of  whom  do  dealers  buy  their  goods  ?  How  are  they  transported  from  the  buy- 
er's place  of  business  to  that  of  the  seller  ?  What  are  the  parties  who  transport  these  goods 
called  ?  Who  pays  the  charges  which  they  make  for  their  services  ?  What  is  an  invoice,  to 
whom  is  it  sent,  and  when  ?  When  should  an  invoice  that  is  received  be  entered  ?  When 
should  an  entry  be  made  for  cash  received,  and  in  what  book  ?  At  least  how  many  times 
should  money  be  counted  when  received  or  paid  out  ?  Whpt  is  said  about  getting  and  giving 
receipts  for  money  paid  or  received  ?  What  should  a  receipt  show  ?  How  would  you  fold 
and  file  an  invoice  ?  Explain  how  you  would  make  a  deposit  in  a  mercantile  bank  ? 
Describe  the  Bank  Book  and  explain  its  use  ?  When  should  a  blank  check  be  filled  out  ? 
In  what  book  and  on  which  side  of  the  book  should  an  entry  be  made  when  a  check  is  drawn  ? 
Describe  a  Freight  Bill  and  a  Freight  Receipt  and  explain  their  use  ?  What  is  a  Shipping 
Receipt  and  how  is  it  used  ?  How  do  you  count  paper  money  ?  When  a  draft  is  drawn 
upon  a  customer,  what  does  business  usage  require  ?  What  is  a  telegram  and  how  does  it 
differ  from  a  letter  ?    What  is  a  Statement  ?    Describe  its  form  ? 


1       I     — TS-'    * 


!r  ^  ¥.>*, 


